Intro to Financial Management & Cost Concepts and Tools

Question 1

Provide examples of short-term financial management activities or concerns.

Answer 1

1. Cash management (Current Assets)
2. Inventories Management (Current Asset)
3. Accounts Payable (Current Liability)

Question 2

Provide example(s) of long-term financial management activity.

Answer 2

1. Dividend management policy

2. Capital budgeting

Question 3

What are some “tools” that are going to be used in financial management?

Answer 3

1. Time Value of Money

2. Interest Rate Concepts

Question 4

Are both short-term and long-term decision and matters important in financial management?

Answer 4

Yes. Both.

Question 5

Financial management is concerned with the efficiency and effectiveness of?

Answer 5

1. Acquisition of financial resources

2. Use of financial resources

Question 6

Provide three examples of functions of financial management.

Answer 6

1. Financing
2. Risk Management
3. Capital Budgeting

Question 7

Internal control is a function of who?

Answer 7

Controller’s office