Answer the following statements with yes or no, if NO
correct mistakes
1- Finance may be defined as the science of managing money.
2- Business accounting concerns with the best way of using available
financial resources to meeting business enterprise needs.
3- There are two (2) types of corporate finance & public finance.
4- Financial management concerned with the efficient use of capital in
business.
5- There are two (2) objectives of financial management, maximization
of profit and revenue maximization.
6- In modern finance “revenue maximization” is the process, which
increases earnings per Share (EPS) in the short-run.
7- Profit maximization refers to the concept of increasing the value of
the shares held by its stockholders.
8- Traditional approach of financial management includes,
arrangement of funds through various financial instruments (long-run
capital to fixed assets, short-run funds to current assets).
9- The dividend decision and financial planning are part of traditional
approach of financial management.
10- Business cycle consists of the following stages only: launch,
shakeout maturity and decline.
11- Accounting balance sheet includes accounting values of items only.
12- Financial balance sheet display real values of items only.
13- Fixed assets contains items owned by the business that have high
liquidity.
14- Liquidity orders means arranging items of the balance sheet
according to their convertibility to cash order.
15- Owners equity placed in a separate category in the assets side.
16- Current assets include all items owned by the company for which
liquidity is more than a year.
17- Owners’ equity includes treasury stock.
18- Treasury stock is a type of bonds for which maturity more than one
(1) year.
19- Retained earnings also called saved profit.
20- Allocation of capital refers to the efficiency of the funds available
to realize a maximum profit.