Under the Fair Credit Reporting Act (FCRA), if you have been denied credit, you have a right to A) inspect your credit file and have any errors or unsubstantiated entries corrected or removed. B) sue the credit bureau if your credit file indicates that you should have been granted credit. C) same response as b, […]
Date: September 19th, 2020
Pro forma estimates of cash flows are rarely if ever correct. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following choices will lead to a DECREASE in loan requirements? A) an increased age of accounts receivable B) an increased age of accounts payable C) a shortened age of inventory D) Each of the above will lead to a decrease in loan requirements. ANSWER C
Date: September 19th, 2020
What is the present value of an annuity of $4,000 received at the beginning of each year for the next eight years? The first payment will be received today, and the discount rate is 9% (round to nearest $1). A) $35,712 B) $24,132 C) $25,699 D) $36,288 ANSWER B
Date: September 19th, 2020
An employee of Nelson Manufacturing was injured by a defective machine Nelson purchased from Clark Corporation. The employee’s tort action against Clark was successful. Clark, in turn, sued Nelson, alleging that Nelson failed to provide proper operating instructions to the employee. This claim (Clark vs. Nelson) is covered under Part Two of Nelson’s workers compensation […]
Date: September 19th, 2020
In what important ways do financial managers and the accounting discipline interact? What will be an ideal response? ANSWER Financial managers deal with the management of working capital, capital structure decisions, and capital budgeting. In each of these a financial manager relies heavily on the development of accurate financial statements and the projection […]
Date: September 19th, 2020
Based solely on risk considerations, a mixed debt and equity firm does not have to worry about any financial obligations related to creditors. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which of the following best describes cash flow from financing activities? A) Interest expense, minus dividends paid B) Increase (or minus decrease) in stock, plus increase (or minus decrease) in debt, minus interest paid, minus dividends paid C) Interest income, plus dividend income, minus taxes D) Interest paid, plus dividends paid, plus increase (or minus […]
Date: September 19th, 2020
Your company has received a $50,000 loan from an industrial finance company. The annual payments are $6,202.70. If the company is paying 9 percent interest per year, how many loan payments must the company make? A) 13 B) 19 C) 12 D) 15 ANSWER D
Date: September 19th, 2020
Which of the following statements about the liability coverage of the Business Auto Coverage Form is (are) true? I. The insurer agrees to defend the insured and pay all legal defense costs arising out of an accident involving a covered auto. II. The insured is covered for property damage and bodily injury arising out of […]
Date: September 19th, 2020
