Answer the following statement(s) true (T) or false (F)
1. The financial manager is always referred to as the Chief Financial Officer (CFO).
2. Most new businesses pay costs such as payroll and rent out of a cash reserve.
3. All sales transactions, regardless of payment terms, are considered a part of the firm’s cash flow.
4. Treasury bills (T-bills) are, basically, short-term loans from the company to the U.S. Treasury.
5. Because T-bills are virtually risk free, they are best suited for the small investor that cannot afford to take a large risk.
1. FALSE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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Percentage analyses, ratios, turnovers, and other measures of financial position and operating results are
a. a substitute for sound judgment b. useful analytical measures c. enough information for analysis; industry information is not needed d. unnecessary for analysis, but reaction is better
During which stage of team development do close relationships develop and the group demonstrates cohesiveness?
A. Norming B. Storming C. Performing D. Adjourning E. Forming
The equity method of accounting for an investment is used when a company purchases
a. More than 20% of the debt securities of a second company. b. 100% of the debt securities of a second company. c. 15% of the equity securities of a second company. d. More than 20% of the equity securities of a second company.
An accounting information system (AIS) is defined as being an information system that records, processes and reports on transactions to provide financial and nonfinancial information for decision making and control.
Answer the following statement true (T) or false (F)