If the U.S. dollar currently buys more Brazilian goods than the Brazilian real buys American goods, A) purchasing power parity holds at this moment. B) the real should appreciate. C) the dollar should appreciate. D) Brazilian prices should fall. E) U.S. prices should rise. ANSWER B
Date: September 19th, 2020
The quick ratio improves upon the current ratio by A) using more up-to-date information. B) simplifying the calculation. C) subtracting intangible assets like goodwill. D) recognizing that inventory is the current asset that is easiest to value. E) recognizing that inventory is the least liquid current asset. ANSWER E
Date: September 19th, 2020
________ exports can be caused by a(n) ________ currency, which can cause slower growth. A) Decreasing; appreciating B) Decreasing; depreciating C) Increasing; appreciating D) Increasing; depreciating ANSWER A
Date: September 19th, 2020
Which of the following is a cost of holding inventory? A) Workers comp B) Reordering costs C) Conversion costs D) Insurance costs ANSWER D
Date: September 19th, 2020
Shares of Brockshire Holding Company Inc. trade for $90,000 per share. There are 1.75 million shares outstanding. If Brockshire wanted to execute a stock split so as to reduce the stock price to $80, what split ratio would they use? A) 100-for-1 B) 125-for-1 C) 550-for-1 D) 1,125-for-1 E) 1,550-for-1 ANSWER D
Date: September 19th, 2020
What is the quick ratio if cash is $10,000, accounts receivable are $25,000, inventories are $30,000, accounts payable are $40,000, and accrued payroll is $15,000? A) 2.00 B) 1.18 C) 0.73 D) 1.13 E) 0.09 ANSWER E
Date: September 19th, 2020
The foreign exchange market is ________ and functions much like a ________ market. A) noncompetitive; decentralized B) competitive; centralized C) noncompetitive; centralized D) competitive; decentralized ANSWER B
Date: September 19th, 2020
What is the current ratio if cash is $10,000, accounts receivable are $25,000, inventories are $30,000, accounts payable are $40,000, and accrued payroll is $15,000? A) 2.00 B) 1.18 C) 1.13 D) 0.64 E) 0.73 ANSWER B
Date: September 19th, 2020
The ________ states that two identical products produced in two different countries should cost the same to traders in any other country. A) Law of one price B) Relative purchasing power parity C) Absolute purchasing power parity D) Arbitrage ANSWER A
Date: September 19th, 2020
The combined costs of holding inventory are called A) opportunity costs. B) storage costs. C) carrying costs. D) stocking charges. E) maintenance costs. ANSWER C
Date: September 19th, 2020
