QUESTION Currency represents roughly 3/4 of all media of exchange in the United States. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Currency represents only about 1/3 of all media of exchange in the United States.
Date: September 3rd, 2020
QUESTION A financial plan always looks one year ahead. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: A financial plan may be as short as one month or as long as ten years.
Date: September 3rd, 2020
QUESTION Cash flow forecasts are based on anticipated sales and on anticipated expenses. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Cash flow forecasts are predictions about how money will come in and go out of a firm in the near future. Such forecasts are based on anticipated sales and […]
Date: September 3rd, 2020
QUESTION Operating budgets of production and sales are based on the sales budget. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: The other operating budgets indicate the labor, materials, and other costs required to produce that number of products and to sell them.
Date: September 3rd, 2020
QUESTION A capital budget covers a month’s time, and it can only be reflected six months into the future. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: A capital budget covers a year’s time, and it can be reflected years into the future.
Date: September 3rd, 2020
QUESTION Whether short term or long term, a loan may be secured or unsecured. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Both short-term and long-term loans can be either secured or unsecured loans.
Date: September 3rd, 2020
QUESTION The only way for a firm to make use of its accounts receivable in order to generate short-term funds is by selling them. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: There are two ways firms can make use of their accounts receivable in order to generate short-term funds: […]
Date: September 3rd, 2020
QUESTION Factoring is a very inexpensive way for firms to get a short-term infusion of funds. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Factoring is an expensive way for firms to get a short-term infusion of funds, but it provides an avenue for small businesses that may not qualify […]
Date: September 3rd, 2020
QUESTION Promissory notes are lines of credit to be paid off at a later date. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Because they allow a buyer to pay a seller at a later date, promissory notes are often used in the jewelry business.
Date: September 3rd, 2020
QUESTION Among the activity ratios the executives want to see calculated is the inventory turnover ratio. Which of the following questions does this ratio best help answer? A) How many employees does Santos need to turn over its inventory? B) How much debt does Santos currently carry? C) What is Santos’s current owners’ equity? D) […]
Date: September 3rd, 2020
