Questions from Corporate Finance


Q: Summarize the main responsibilities of the finance function (including CFO,

Summarize the main responsibilities of the finance function (including CFO, treasurer, and controller) in a non-financial company.

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Q: Why can effective rates often be very different from quoted rates?

Why can effective rates often be very different from quoted rates?

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Q: What happens to the net income figure when a firm’s accountants make

What happens to the net income figure when a firm’s accountants make more aggressive accounting assumptions? Briefly explain.

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Q: How do cash flow statements alleviate the impact of most major accounting

How do cash flow statements alleviate the impact of most major accounting assumptions?

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Q: What is finance?

What is finance?

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Q: Distinguish between real and financial assets.

Distinguish between real and financial assets.

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Q: Explain how simple interest payments are determined.

Explain how simple interest payments are determined.

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Q: Why does simple interest take into account the time value of money

Why does simple interest take into account the time value of money?

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Q: Which sector or sectors of the economy are net providers of financing

Which sector or sectors of the economy are net providers of financing and which are the net users of financing?

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Q: In what ways are bonds different from mortgages?

In what ways are bonds different from mortgages?

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