A firm’s operating breakeven point is the level of sales necessary to cover all fixed operating costs. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Under a line of credit agreement, a bank may retain the right to revoke the line if any major changes occur in the firm’s financial condition or operations. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
What are the two most popular forms of capital budgeting decision rules in practice? A) IRR and payback period B) profitability index and payback period C) IRR and NPV D) NPV and profitability index ANSWER C
Date: September 19th, 2020
A discount loan is a loan on which interest is paid in advance by deducting it from the loan so that the borrower actually receives less money than is requested. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following is NOT a component of GDP? A) Consumer sector B) Business investment sector C) Government sector D) Healthcare sector ANSWER D
Date: September 19th, 2020
Decreases in assets and increases in liabilities and equity represent SOURCES of cash. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Crater Lake Diagnostics Inc is considering the purchase of a new piece of equipment that has an initial investment of $75,000, has annual expenses associated with its operation of $10,000 per year and has a six year life. What is the equivalent annual cost of this investment if the firms considers the appropriate discount rate […]
Date: September 19th, 2020
Gross domestic product product (GDP) is a measure of: A) the total amount of goods and services sold over a particular period of time. B) the total amount of goods and services produced over a particular period of time. C) the projected amount of goods and services to be produced over a particular period of […]
Date: September 19th, 2020
Breakeven analysis is used by a firm to determine the level of operations necessary to cover all fixed operating costs and to evaluate the profitability associated with various levels of production. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Increases in assets and decreases in liabilities and equities represent SOURCES of cash. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
