FIN 350 Fundamentals of Business Finance Review Exam Q & A 2026 (Complete And Verified Study material) (15pages) LEARNEXAMS

1. Which of the following best describes the concept of managerial

finance?

 A. Managing personal finances

 B. Managing corporate finances

 C. Managing government finances

 D. Managing investment portfolios

 Answer: B. Managing corporate finances

 Rationale: Managerial finance refers to the management of a company's

financial operations to achieve business objectives.

2. Which of the following financial statements provides information about

a company's assets, liabilities, and equity as of a specific date?

 A. Income statement

 B. Balance sheet

 C. Statement of cash flows

 D. Statement of retained earnings

 Answer: B. Balance sheet

 Rationale: The balance sheet provides a snapshot of a company's

financial position at a specific point in time.

3. Which of the following best describes the time value of money?

 A. Money loses value over time

 B. Money has the same value over time

 C. Money has a greater value in the future than in the present

 D. Money has a greater value in the present than in the future

 Answer: C. Money has a greater value in the future than in the present

 Rationale: The time value of money concept states that a dollar received

today is worth more than a dollar received in the future due to the

potential to earn interest or returns.

4. If the interest rate is 5%, what is the future value of $1,000 invested for

5 years?

 A. $1,025

 B. $1,025.25

 C. $1,050

 D. $1,025.63

 Answer: B. $1,025.25