Which of the Following Activities of a Finance Manager Determines

question 61

Multiple Choice

Which of the following activities of a finance manager determines how the firm raises money to pay for the assets in which it invests?

• A) financial analysis and planning
• B) investment decisions
• C) financing decisions
• D) analyzing and planning cash flows

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Definitions:

Estimated Useful Life

The period over which a depreciable asset is expected to be used by an organization, influencing the depreciation method applied.

Equipment Account

An account on a company's balance sheet that reports the value of the company's ownership in equipment, adjusted for depreciation.

Non-Controlling Interest

A shareholder or equity interest in a corporation that is not large or significant enough to confer control over the business.

Entity Method

An accounting approach used in preparing consolidated financial statements where investments in subsidiaries are recorded at cost and adjusted for the parent company's share of the subsidiaries' post-acquisition profits or losses.