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Principles of Managerial Finance 14th Edition Gitman Test Bank
Principles of Managerial Finance 14th Edition Gitman Test Bank
1) Capital budgeting techniques are used to evaluate a firm's fixed asset investments which
provide the basis for the firm's earning power and value.
Answer: TRUE
Diff: 1
Topic: Overview of Capital Budgeting
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Previous Edition
AACSB Tag: Analytic Skills
2) The purchase of additional physical facilities, such as additional property or a new factory, is
an example of a capital expenditure.
Answer: TRUE
Diff: 1
Topic: Overview of Capital Budgeting
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Previous Edition
AACSB Tag: Reflective Thinking Skills
3) Capital budgeting is the process of evaluating and selecting short-term investments that are
consistent with the firm's goal of maximizing owners' wealth.
Answer: FALSE
Diff: 1
Topic: Overview of Capital Budgeting
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Revised
AACSB Tag: Analytic Skills
4) A capital expenditure is an outlay of funds invested only in fixed assets that is expected to
produce benefits over a period of time less than one year.
Answer: FALSE
Diff: 1
Topic: Overview of Capital Budgeting
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Previous Edition
AACSB Tag: Analytic Skills
1
Copyright © 2015 Pearson Education, Inc.
5) An outlay for advertising and management consulting is considered to be a fixed asset
expenditure.
Answer: FALSE
Diff: 1
Topic: Overview of Capital Budgeting
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Previous Edition
AACSB Tag: Reflective Thinking Skills
6) Capital expenditure proposals are reviewed to assess their appropriateness in light of a firm's
overall objectives and plans, and to evaluate their economic validity.
Answer: TRUE
Diff: 1
Topic: Overview of Capital Budgeting
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Previous Edition
AACSB Tag: Reflective Thinking Skills
7) The basic motives for capital expenditures are to expand operations, to replace or renew fixed
assets, or to obtain some other, less tangible benefit over a long period.
Answer: TRUE
Diff: 1
Topic: Motives for Capital Expenditure
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Revised
AACSB Tag: Analytic Skills
11) The capital budgeting process consists of four distinct but interrelated steps: proposal
generation, review and analysis, decision making, and termination.
Answer: FALSE
Diff: 1
Topic: Steps in the Process
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Previous Edition
AACSB Tag: Analytic Skills
12) Independent projects are projects that compete with one another for a firm's resources, so that
the acceptance of one eliminates the others from further consideration.
Answer: FALSE
Diff: 2
Topic: Basic Terminology
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Previous Edition
AACSB Tag: Analytic Skills
13) If a firm has unlimited funds to invest in capital assets, all independent projects that meet its
minimum investment criteria should be implemented.
Answer: TRUE
Diff: 1
Topic: Basic Terminology
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Previous Edition
AACSB Tag: Analytic Skills
3
Copyright © 2015 Pearson Education, Inc.
14) In capital budgeting, the preferred approaches in assessing whether a project is acceptable
are those that integrate time value procedures, risk and return considerations, and valuation
concepts.
Answer: TRUE
Diff: 1
Topic: Capital Budgeting Techniques
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Previous Edition
AACSB Tag: Analytic Skills
15) In capital budgeting, the preferred approaches in assessing whether a project is acceptable
are those that integrate time value of money, risk and return considerations, and valuation
concepts to select capital expenditures that are consistent with the firm's goal of maximizing
owners' wealth.
Answer: FALSE
Diff: 1
Topic: Capital Budgeting Techniques
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Revised
AACSB Tag: Analytic Skills
16) A $60,000 outlay for a new machine with a usable life of 15 years is an operating
expenditure that would appear as a current asset on a firm's balance sheet.
Answer: FALSE
Diff: 1
Topic: Capital Budgeting Techniques
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Previous Edition
AACSB Tag: Analytic Skills
17) A nonconventional cash flow pattern associated with capital investment projects consists of
an initial outflow followed by a series of inflows.
Answer: FALSE
Diff: 1
Topic: Capital Budgeting Techniques
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Revised
AACSB Tag: Analytic Skills
4
Copyright © 2015 Pearson Education, Inc.
18) Time value of money should be ignored in capital budgeting techniques to make accurate
decisions.
Answer: FALSE
Diff: 2
Topic: Basic Terminology
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Previous Edition
AACSB Tag: Reflective Thinking Skills
19) If a firm has limited funds to invest, all the mutually exclusive projects that meet its
minimum investment criteria should be implemented.
Answer: FALSE
Diff: 1
Topic: Basic Terminology
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Revised
AACSB Tag: Analytic Skills
20) Mutually exclusive projects are projects whose cash flows are unrelated to one another; the
acceptance of one does not eliminate the others from further consideration.
Answer: FALSE
Diff: 1
Topic: Basic Terminology
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Previous Edition
AACSB Tag: Analytic Skills
21) The availability of funds for capital expenditures does not affect a firm's capital budgeting
decisions.
Answer: FALSE
Diff: 2
Topic: Basic Terminology
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Previous Edition
AACSB Tag: Reflective Thinking Skills
5
Copyright © 2015 Pearson Education, Inc.
22) Independent projects are those whose cash flows are unrelated to one another; the acceptance
of one does not eliminate the others from further consideration.
Answer: TRUE
Diff: 2
Topic: Basic Terminology
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Revised
AACSB Tag: Analytic Skills
23) Mutually exclusive projects are those whose cash flows are constant over a specified period
of time and more than one project needs to be accepted in order to implement capital budgeting
decisions.
Answer: FALSE
Diff: 1
Topic: Basic Terminology
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Revised
AACSB Tag: Analytic Skills
24) Independent projects are those whose cash flows compete with one another and therefore
more than one project needs to be accepted in order to implement the capital budgeting decision.
Answer: FALSE
Diff: 1
Topic: Basic Terminology
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Revised
AACSB Tag: Analytic Skills
25) Mutually exclusive projects are those whose cash flows compete with one another; the
acceptance of one eliminates the others from further consideration.
Answer: TRUE
Diff: 2
Topic: Basic Terminology
Learning Obj.: LG 1
Learning Outcome: F-08
Question Status: Revised
AACSB Tag: Analytic Skills
6
Copyright © 2015 Pearson Education, Inc.
Another random document with
no related content on Scribd:
The Project Gutenberg eBook of Greece and
Babylon
This ebook is for the use of anyone anywhere in the United
States and most other parts of the world at no cost and with
almost no restrictions whatsoever. You may copy it, give it away
or re-use it under the terms of the Project Gutenberg License
included with this ebook or online at www.gutenberg.org. If you
are not located in the United States, you will have to check the
laws of the country where you are located before using this
eBook.
Language: English
BY
LEWIS R. FARNELL, D.Litt., M.A.
FELLOW OF EXETER COLLEGE, OXFORD
AUTHOR OF
“CULTS OF THE GREEK STATES,” “EVOLUTION OF RELIGION,”
“HIGHER ASPECTS OF GREEK RELIGION” (HIBBERT LECTURES)
CHAPTER II.
Statement of the Problem and the Evidence.
CHAPTER III.
Morphology of the Compared Religions.
CHAPTER IV.
Anthropomorphism and Theriomorphism in Anatolia and the
Mediterranean.
CHAPTER V.
Predominance of the Goddess.
CHAPTER VI.
The Deities as Nature-Powers.
CHAPTER VII.
The Deities as Social-Powers.
CHAPTER VIII.
Religion and Morality.
CHAPTER IX.
Purity a Divine Attribute.
CHAPTER X.
Concept of Divine Power and Ancient Cosmogonies.
CHAPTER XI.
The Religious Temperament of the Eastern and Western
Peoples.
The relation of the individual to the deity more intimate in
Mesopotamia than in Greece—The religious temper more
ecstatic, more prone to self-abasement, sentimentality, rapture
—Humility and the fear of God ethical virtues in Babylonia—The
child named after the god in both societies—In some Semitic
communities the deity takes a title from the worshipper—
Fanaticism in Mesopotamian religion, entire absence of it in the
Hellenic
CHAPTER XII.
Eschatologic Ideas of East and West.
CHAPTER XIII.
Comparison of the Ritual.
CHAPTER XIV.
Summary of Results.
INDEX OF NAMES AND SUBJECTS.
ENDNOTES.
GREECE AND BABYLON.
CHAPTER I.
Inaugural Lecture.