Which of the following is a fixed asset? A) land B) accounts payable C) accruals D) notes payable ANSWER A
Date: September 19th, 2020
A(n) ________ provides a financial summary of a firm’s operating results during a specified period. A) income statement B) balance sheet C) statement of cash flows D) statement of retained earnings ANSWER A
Date: September 19th, 2020
The net value of fixed assets is also called its ________. A) market value B) par value C) book value D) intrinsic value ANSWER C
Date: September 19th, 2020
Risk-free rate of interest is equal to the sum of the real rate of interest plus an inflation premium. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Upward-sloping yield curves result from higher future inflation expectations, lender preferences for shorter maturity loans, and greater supply of short-term as opposed to long-term loans relative to their respective demand. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Gross profit is ________. A) operating profits minus depreciation B) operating profits minus cost of goods sold C) sales revenue minus operating expenses D) sales revenue minus cost of goods sold ANSWER D
Date: September 19th, 2020
Retained earnings on the balance sheet represents the ________. A) net profit after taxes B) amount of proceeds in excess of the par value received from the original sale of common stock C) net profit after taxes minus preferred dividends D) cumulative total of all earnings reinvested in the firm ANSWER D
Date: September 19th, 2020
Nominal rate of interest is equal to the sum of the real rate of interest plus an inflation premium plus a risk premium. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
A flat yield curve means that the rates do not vary much at different maturities. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Operating profit is ________. A) gross profit minus operating expenses B) sales revenue minus cost of goods sold C) earnings before depreciation and taxes D) sales revenue minus depreciation expense ANSWER A
Date: September 19th, 2020
