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
A firm’s risk level will fluctuate as its ________ changes. A) financial leverage B) debt-to-equity C) degree of financial leverage D) All of the above. ANSWER D
Date: September 19th, 2020
While operating leverage results only in a magnification of returns, financial leverage results only in a magnification of risk. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The effective interest rate on a bank loan depends on whether interest is paid when the loan matures or in advance. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following statements are NOT true? A) Peaks in the business cycle tend to occur when the capacity-to-output gap is the largest. B) Peaks in the business cycle tend to occur when the capacity-to-output gap is the smallest. C) Troughs occur when the capacity-to-output gap is the largest. D) None of the above. […]
Date: September 19th, 2020
A firm’s capital structure combines all forms of financing on which the firm relies including: A) preferred shares. B) common equity. C) long-term debt. D) All of the above. ANSWER D
Date: September 19th, 2020
