Question

Q1 Suppose Vortex Co. has bonds that are coming due in less than a year. They also have a note payable that is due in 5 years. The issuer of the note would be concerned about the firm's _____________ whereas the issuer of the bonds would be concerned about the firm's______________. viability; profitability. solvency ; liquidity. profitability; viability. liquidity ; solvency. Q2 Which statement is true? Financial accounting focuses on departmental budgets and control of expenses; Managerial accounting focuses on taxation and cash flow. Financial accounting focuses on taxation and cash flow; Managerial accounting focuses on departmental budgets and control of expenses. Financial accounting attepts to improve decisions; Managerial accounting reports results of operations. Financial accounting reports results of operations; Managerial accounting attempts to improve decisions. Q3 The main goal of financial management is: to maximize cash flows. to maximize market shares. to maximize profit while not sacrificing the firm's viability. to maximize sales.

Answer 1

Q1 Suppose Vortex Co. has bonds that are coming due in less than a year. They also have a note payable that is due in 5 years. The issuer of the note would be concerned about the firm's _____________ whereas the issuer of the bonds would be concerned about the firm's______________ viability; profitability. solvency ; liquidity. profitability; viability. liquidity ; solvency .

Ans : solvency ; liquidity

Q2 Which statement is true? Financial accounting focuses on departmental budgets and control of expenses; Managerial accounting focuses on taxation and cash flow. Financial accounting focuses on taxation and cash flow; Managerial accounting focuses on departmental budgets and control of expenses. Financial accounting attempts to improve decisions; Managerial accounting reports results of operations. Financial accounting reports results of operations; Managerial accounting attempts to improve decisions.

Ans : Financial accounting attempts to improve decisions; Financial accounting focuses on cash flow; Financial accounting focuses on control of expenses;

Q3 The main goal of financial management is: to maximize cash flows. to maximize market shares. to maximize profit while not sacrificing the firm's viability. to maximize sales.

Ans : The two primary goal of managerial accounting are planning and controlling : Hence to maximize cash flows