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Investing and Financing Cycle Quiz

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INVESTING AND FINANCING CYLCLE

1. Its concerned with transactions related to the use of the organization’s funds
(____________) and sources of those funds
Answer: Investing
Financial Strategy Investing
Investments Securities
2. Merger and Acquisitions is the involvement of a business with other businesses
to serve as an investment
Answer: True
True / False
3. All are Investment and Finance activities except:
Answer: Invest Withdrawals
Financial Planning Mergers and Acquisitions
Invest Withdrawals Raise Capital
4. It is the intentional misstatement to avoid having banks call loans.
Answer: Loan Covenants
Loan Covenants Lease Accounting
Related Party Transactions Loan Impairments
5. Financial Planning involves cash flow planning and capital budgeting serve as
controls.
Answer: True
True / False
6. Accounts affected by investing and financial cycle transactions include all except:
Answer: Common Stock
Investment in Securities Common Stock
SHE Accounts Bonds Payable
7. Investing & Financing activity is concerned w/ transactions related to the use of
investing and sources of those fund
Answer: True
True / False
8. The inherent risk where transactions are often structured to get around
GAAP. Makes them difficult and hard to audit.
Answer: Complex Transactions
Complex Transactions Lease Accounting
Loan Covenants Related Party Transactions
9. The activity "raise capital" involves signature approval of high-ranking officers
and consent of board of directors
Answer: True
True / False
10. Its concerned with transactions related to the use of the organisation's funds and
sources of those funds (____________)
Answer: Financing
Investing Financing
Investments Financial Market

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