Given the information below, calculate the company’s cash balance at the end of the year. Cash Balance at Beginning of Year $80,000 Activity During the Year Increase in Accounts Payable $60,000 Decrease in Accounts Receivable $40,000 Depreciation Expense $500,000 Net Income $2,000,000 Purchase of Fixed Assets $800,000 Sales of Common Stock $100,000 Decrease in Notes […]
Which of the following is NOT an advantage of a limited partnership? A) Minimal legal requirements to start the business B) Limited partnerships are limited in their management of the firm C) Limited liability D) None of the above ANSWER C
What was the average annual rate of return on long-term government bonds (30-year Treasury bonds) during the period 1990 to 2014? A) 5.49% B) 4.14% C) 5.88% D) 7.82% ANSWER A
If you put $200 in a savings account at the beginning of each year for 10 years and then allow the account to compound for an additional 10 years, how much will be in the account at the end of the 20th year? Assume that the account earns 10% and round to the nearest $100. […]
How much money must you pay into an account at the end of each of 20 years in order to have $100,000 at the end of the 20th year? Assume that the account pays 6% per year, and round to the nearest $1. A) $2,028 B) $1,840 C) $2,195 D) $2,718 ANSWER D
Which of the following statements about purchasing cyber liability insurance is true? I. The coverage can be obtained by adding the appropriate endorsement to the general liability coverage. II. The coverage can be obtained by purchasing stand-alone cyber liability coverage. A) I only B) II only C) both I and II D) neither I nor […]
Which of the following financial ratios is the best measure of the operating effectiveness of a firm’s management? A) times interest earned B) operating efficiency quotient C) net profit margin D) operating return on assets ANSWER D
Of the following, which differs in meaning from the other three? A) systematic risk B) asset-unique risk C) market risk D) undiversifiable risk ANSWER B
The auto dealers coverage form includes coverage for violating odometer (mileage) disclosure laws and selling a vehicle where there was a title defect. Which coverage under the auto dealers coverage form would respond to such claims? A) garagekeepers liability coverage B) liability coverage for “covered autos” C) general liability insurance coverage D) acts, errors or […]
What was the average annual rate of return on 3-month U.S. Treasury bills during the period 1990 to 2014? A) 3.04% B) 5.68% C) 4.23% D) 2.15% ANSWER A
