Select all that is true about the role of financial managers and the types of financial decisions they make. a. The optimal financial management strategy of a financial manager is to reduce the overall risk level of the firm. b. The duties of the financial manager includes determining the capital structure and which projects the firm should undertake. c. Capital structure describes the mix of short-term liabilities a firm uses to finance its short-term assets. d. Capital Budgeting function involves planning and determining the firm’s short term investments. e. Determining the appropriate level of inventory is a working capital management function. f. Size and timing of cash flows is unimportant in a capital budgeting decision.

Select all that is true about the role of financial managers and the types of financial decisions they make. a. The optimal financial management strategy of a financial manager is to reduce the overall risk level of the firm. b. The duties of the financial manager includes determining the capital structure and which projects the firm should undertake. c. Capital structure describes the mix of short-term liabilities a firm uses to finance its short-term assets. d. Capital Budgeting function involves planning and determining the firm’s short term investments. e. Determining the appropriate level of inventory is a working capital management function. f. Size and timing of cash flows is unimportant in a capital budgeting decision.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter12: Capital Investment Decisions

Section: Chapter Questions

Problem 2MCQ: To make a capital investment decision, a manager must a. estimate the quantity and timing of cash...

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Select all that is true about the role of financial managers and the types of financial decisions they make. a. Capital Budgeting function involves planning and determining the firm’s short term investments. b. Determining the appropriate level of inventory is a working capital management function. c. The duties of the financial manager includes determining the capital structure and which projects the firm should undertake. d. Capital structure describes the mix of short-term liabilities a firm uses to finance its short-term assets. e. The optimal financial management strategy of a financial manager is to reduce the overall risk level of the firm. f. Size and timing of cash flows is unimportant in a capital budgeting decision.
Select all that is true about the role of financial managers and the types of financial decisions they make. Select one or more: a. Capital structure describes the mix of short-term liabilities a firm uses to finance its short-term assets. b. The optimal financial management strategy of a financial manager is to reduce the overall risk level of the firm. c. The duties of the financial manager includes determining the capital structure and which projects the firm should undertake. Od. Size and timing of cash flows is unimportant in a capital budgeting decision. e. Capital Budgeting function involves planning and determining the firm's short term investments. Of. Determining the appropriate level of inventory is a working capital management function. ZA do W X L
Which of the following statements is true? a. Determining how day-to-day financial matters should be managed is not a function of financial managers. B. The goal of the firm is to maximize market share. C. Working capital management refers to identifying productive long-term assets the firm could acquire to maximize net benefits. D. Capital budgeting refers to identifying productive long-term assets the firm could acquire to maximize net benefits.
Which of the following scenario shows the financial manager’s financing function? a. Prioritizing investments based on properly computed capital rationing method. b. Capital budgeting computation and decision with regards to the planned acquisition. c. Assessing and selecting a long-term and short-term financing tools that has a low cost. d. Monitoring trends in operating expenses for the purpose of budget allocation.
Capital budgeting is the ________. A. process of planning for investments in long−term assets B. process of evaluating the profitability of a business C. process of making pricing decisions for products D. preparation of the budget for operating expenses
Capital budgeting techniques comes under which function of financial manager a.Tax Management b.Investment Decision c.Liquidity Management d.Acquiring necessary capital
What is the difference between systematic and unsystematic risk?ii. What is strategic business plan and why it is important for the success of a firm? Explain inyour own words.iii. Explain for which types of projects, a detailed capital budgeting analysis is required and why?
Q.2. Why capital budgeting decision is important for a financial manager while taking on long term investment decision? How capital budgeting decision is linked with wealth maximization goal of the firm? Financial management question
Which of the following is NOT a major step in the capital budgeting process? a. generating investment project proposals b. analyzing the effect of a project on the firm's financial ratios c. performing a project post-audit and review d. estimating cash flows
Deciding a firm's capital structure can be understood as: a. a capital budgeting decision b. a capital structure decision c. a primary market decision d. an asset efficiency decisionn\
Deciding a firm's capital structure can be understood as: a. a capital budgeting decision b. a capital structure decision c. a primary market decision d. an asset efficiency decision
Sub:-Accounting What is the role of management accountants in capital budgeting and investment decisions?