What are taxes payable for the Equity and Debt firm? A) $240,000 B) $560,000 C) $300,000 D) $0 ANSWER A Explanation: A) Taxes payable = EBT * Tax rate = $800,000 * .30 = $240,000.
Date: September 19th, 2020
The least frequently issued capital financial instruments listed herein are: A) preferred shares. B) common shares. C) bonds. D) In reality, these instruments are issued in similar magnitude. ANSWER A
Date: September 19th, 2020
A PEST analysis involves an analysis of which of these factors? A) Technological, societal, economic factors, and potential threats B) Societal, technological, political, and economic factors C) Strengths, threats, economic and political factors D) Strengths, threats, potential opportunities, and external environment factors ANSWER B
Date: September 19th, 2020
Breakeven analysis is used by a firm ________. A) to determine the level of operations necessary to cover all fixed operating costs B) to determine the least cost of producing goods and services C) to evaluate the profitability associated with various levels of sales D) to determine the demand of a product ANSWER […]
Date: September 19th, 2020
What are the Earnings after tax for the Equity and Debt firm? A) $240,000 B) $300,000 C) $560,000 D) $0 ANSWER C Explanation: C) EAT = EBT – Taxes Payable = $800,000 – $240,000 = $560,000.
Date: September 19th, 2020
Which of the following are the three basic ways of lending unsecured, short-term funds by commercial banks? A) mortgage-backed securities, T-bonds, and commercial paper B) single-payment note, lines of credit, and revolving credit agreements C) T-bills, municipal bonds, and commercial paper D) commercial paper, real estate bonds, and corporate bonds ANSWER B
Date: September 19th, 2020
Short-term loans that businesses obtain from banks and through commercial paper are ________. A) negotiated and secured B) negotiated and unsecured C) spontaneous and secured D) spontaneous and unsecured ANSWER B
Date: September 19th, 2020
________ costs require the payment of a specified amount in each accounting period. A) Operating B) Variable C) Semi-variable D) Fixed ANSWER D
Date: September 19th, 2020
In case of a manufacturing organization, which of the following is a variable cost that varies directly with the sales volume? A) interest cost B) dividend cost C) shipping cost D) rental cost ANSWER C
Date: September 19th, 2020
The major real-world benefit of debt is that interest payments are: A) made after tax considerations. B) a tax-deductible expense. C) always less than 10% of the firm’s profit. D) smaller than the dividend payments. ANSWER B
Date: September 19th, 2020
