Apollo Corp reported the following balance sheet: Cash $28,000 Accounts payable $5,000 Accounts receivable 15,000 Notes Payable 12,000 Inventory 45,000 Accruals 17,000 Net Fixed Assets 122,000 Long-Terms Debt 45,000 Common Stock 10,000 Retained Earnings 121,000 Total assets $210,000 Total Liab. & Equity $210,000 Apollo Corp’s debt ratio is A) 37.62%. B) 32.17%. C) 39.45%. D) […]
Which of the following statements is true concerning overdrafts? A) An effective way to prevent them is to “overload” the account. B) They can be avoided by arranging an automatic transfer from a savings account. C) They are inexpensive nuisances because banks usually do not charge for overdrafts. D) They differ from “bounced checks” in […]
You are thinking of buying a craft emporium. It is expected to generate cash flows of $30,000 per year in years 1 through 5, and $40,000 per year in years 6 through 10. If the appropriate discount rate is 8%, what amount are you willing to pay for the emporium? A) $215,048 B) $167,943 C) […]
Managers need to take into account a number of perspectives when assessing the “first” criteria. The ________ focuses on comparing the firms capital structure with those of industry competitors. A) competitive perspective B) internal perspective C) investor perspective D) creditor perspective ANSWER A
You have been accepted to study international economy at the European Central Bank (ECB) in Frankfurt. You will need $10,500 every 6 months (beginning today) for the next three years to cover tuition and living expenses. Mom and Dad have agreed to pay for your education, and want to make one deposit today in a […]
When a company sells a piece of equipment or land, any gain (sales price less the book value of the asset or residual value) is thought to be a capital gain. Indicate whether the statement is true or false ANSWER FALSE
Which of the following represents the correct ordering of returns over the period 1926 to 2014 (from lowest to highest return)? A) Treasury bills, common stocks, long-term corporate bonds, long-term government bonds B) Treasury bills, long-term government bonds, long-term corporate bonds, common stocks C) common stocks, long-term government bonds, long-term corporate bonds, Treasury bills D) […]
Which of the following statements about various types of surety bonds is true? A) A judicial bond guarantees that a public official will faithfully perform his or her duties for the protection of the public. B) A payment bond guarantees that the bonded person will appear in court. C) A license and permit bond guarantees […]
Which of the following statements about Generally Accepted Accounting Principles (GAAP) is NOT true? A) GAAP is a set of rule-based accounting standards established by the Financial Accounting Standards Board (FASB). B) GAAP is complex, providing more than 150 “pronouncements” as to how to account for different types of transactions. C) GAAP sets out the […]
Tracy is a trust officer at a bank. One of her responsibilities is to manage funds that have been set aside for the benefit of minor children. What type of bond guarantees that Tracy will faithfully execute her required duties in this capacity? A) fiduciary bond B) public official bond C) court bond D) performance […]