An income statement contains all of the following EXCEPT A) revenues. B) assets. C) losses. D) gains. E) expenses. ANSWER B
Date: September 19th, 2020
In order to reduce its current account deficit, the United States must do which of the following? A) reduce the federal budget deficit B) raise national product relative to national spending C) increase savings relative to domestic investment D) all of the above ANSWER Answer: D
Date: September 19th, 2020
A nation that is running a savings deficit A) must spend more than it produces. B) will invest domestically more than it saves. C) must have a net capital outflow. D) A and B only. ANSWER Answer: D
Date: September 19th, 2020
Meals on Wings Inc, which supplies prepared meals for corporate aircraft, needs to purchase new broilers. The new broilers would replace broilers purchased 10 years ago for $105,000, which are being depreciated on a straight-line basis to a zero salvage value (15-year depreciable life). The old broilers can be sold today for $63,000. The new […]
Date: September 19th, 2020
Which of the following is not included in a cash flow statement? A) Labor productivity B) Interest earnings C) Cash flow from operations D) Depreciation expense E) The increase in long-term debt ANSWER A
Date: September 19th, 2020
Cash-2-Day currently trades for $13. Analysts regard it as fairly valued at its current price. The company has announced that it intends to spend $180 million on an open market repurchase. Management claims that the company’s shares are occasionally undervalued and that buying shares at undervalued prices represents a good investment. Assume that the company […]
Date: September 19th, 2020
The cash conversion cycle is found within the: A) Operating period B) Accounts payable period C) Average collection period D) Holding period ANSWER A
Date: September 19th, 2020
If a U.S. non-profit makes a large gift to an Israeli agency, how is it handled in the balance of payments? What will be an ideal response? ANSWER Answer: The gift is handled as an import of goodwill. If a domestic non-profit gives a gift to a foreign agency, the value of the […]
Date: September 19th, 2020
The collection period is: A) The time it takes to acquire and sell inventory B) The time from the sale of the product until funds are actually received C) The time creditors give to pay D) The time between ordering inventory and having a full inventory ANSWER B
Date: September 19th, 2020
In cross-sectional analysis, a firm’s financial ratios are A) judged against the performance of firms in the same industry. B) compared with the firm’s ratios from the most recent period. C) compared with ratios from all firms. D) compared with a general standard. E) plotted over time to isolate trends. ANSWER A
Date: September 19th, 2020
