________ are liabilities for services received for which payment has yet to be made. A) Notes payable B) Accruals C) Accounts payable D) Accounts receivable ANSWER B
Date: September 19th, 2020
Survey data indicates that the profitability index method of project evaluation is preferred to: A) NPV. B) IRR. C) MIRR. D) None of the above. ANSWER D
Date: September 19th, 2020
Information for the sizing-up process for publicly traded firms can be obtained from: A) the firm’s annual report. B) the firm’s 10-K report filed with the Securities & Exchange Commission. C) industry reports. D) All of the above. ANSWER D
Date: September 19th, 2020
The financial management framework focuses on which three areas of decision-making? A) Operating, investing, and profitability. B) Profitability, financing, and investing. C) Investing, financing, and operating. D) Operating, financing, and profitability. ANSWER C
Date: September 19th, 2020
Your firm decides to increase equity by $1,000,000. Which of the following sets of transactions could NOT be appropriate ledger entries? A) Increase equity by $1,000,000 and increase long-term assets by $1,000,000 B) Increase equity by $1,000,000, decrease long-term debt by $500,000, and increase inventory by $500,000 C) Increase equity by $1,000,000 and increase inventory […]
Date: September 19th, 2020
Leverage results from the use of equity to magnify returns to a firm’s owners. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
What are the primary strengths and weaknesses of the Net Present Value method of capital budgeting? What will be an ideal response? ANSWER The major strength of the net present value method is that it takes into account the time value of money through the discount rate. It implicitly makes the reasonable assumption […]
Date: September 19th, 2020
Generally, decreases in leverage result in increased return and risk, whereas increases in leverage result in decreased return and risk. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Jannet Company, currently pays its employees at the end of a week. The weekly payroll totals $400,000. If it were to extend the pay period so as to pay its employees 1 week later throughout an entire year, the employees would in effect be lending the firm ________ for a year. A) $400,000 B) $20,800,000 […]
Date: September 19th, 2020
Which of the following is NOT a potential source of cash for a firm? A) A decrease in Accounts receivable B) A decrease in inventory C) An increase in retained earnings D) A decrease in equity ANSWER D
Date: September 19th, 2020
