The ________ is as close to a worldwide currency as there is. A) British pound B) U.S. Dollar C) Euro D) Canadian Dollar ANSWER B
Date: September 19th, 2020
What stipulates how a firm will handle each phase of the credit decision? A) Credit Policy B) Credit Period C) Trade Credit D) Cash Discount ANSWER A
Date: September 19th, 2020
Understanding interest rate parity requires that we first understand: A) Purchasing power parity B) Interest rate arbitrage C) Spot Rates D) Purchasing power arbitrage ANSWER B
Date: September 19th, 2020
Income Statement Molson Coors Inc. Years 1 & 2 ($000s) Year 1 Year 2 Revenues 2,429,462 3,776,322 COGS 1,537,623 2,414,530 Depreciation 121,091 230,299 SG&A 619,143 833,208 EBIT 151,605 298,285 Interest Expense -14,403 49,732 Other income 32,005 8,047 Pre-Tax Income 198,013 256,600 Income Tax 75,049 94,947 Net Income 122,964 161,653 Shares outstanding 36,902 36,140 Earnings per […]
Date: September 19th, 2020
The seizure of a firm’s assets by a foreign government is called A) misappropriation. B) rationalization. C) expropriation. D) extortion. E) confiscation. ANSWER C
Date: September 19th, 2020
The length of time it takes a buyer to acquire, process, and sell the inventory is the: A) Receivables Cycle B) Receivables Period C) Inventory Cycle D) Inventory Period ANSWER D
Date: September 19th, 2020
All of the following are reasons money will adhere to PPP accurately EXCEPT A) Electronic transfers B) Universal value C) Easily determined price D) Not substitutable ANSWER D
Date: September 19th, 2020
The primary reason for offering customers credit is to A) increase the predictability of cash flows. B) stimulate sales. C) smooth billing cycles. D) reduce the risk of nonpayment. E) speed cash flows. ANSWER B
Date: September 19th, 2020
Income Statement CFM Majestic Inc. Years 1 & 2 ($000,000s) Year 1 Year 2 Sales 381.9 416.3 COGS 244.9 278.9 SG&A 59.7 63.8 Depreciation 13.8 15.4 R & D 5.3 4.3 EBIT 58.2 53.9 Interest Expense 7.3 7.9 Earnings before Income Tax 50.9 46.0 Income Taxes 17.3 14.8 Net Income 33.6 31.2 Referring to the […]
Date: September 19th, 2020
Many industries offer trade credit so frequently, that failing to do so would result in failure. What is the real credit decision for companies in such industries? A) What terms to offer B) Which collection company to use C) How to obtain credit for purchases D) Maximum credit to extend ANSWER A
Date: September 19th, 2020
