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 […]
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
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 […]
Based on the information in Table 4-3, the average collection period is A) 27.36 days. B) 17.49 days. C) 20.53 days. D) 38.01 days. ANSWER C
Which of the following forms of business organizations provide limited liability to all its owners? A) general partnership B) corporation C) limited partnership D) both B and C ANSWER B
A regular charge account is one A) that covers a single purchase. B) that is used primarily as a shopping convenience. C) that requires an initial security deposit. D) offered only by travel and entertainment lenders, such as American Express. ANSWER B
All of the following are coverage options under the physical damage coverage in the Business Auto Coverage Form EXCEPT A) comprehensive coverage. B) specified causes-of-loss coverage. C) collision coverage. D) property damage liability coverage. ANSWER Answer: D
Investors expect to receive the highest returns from government-issued securities because the government will not default on securities that it has issued. Indicate whether the statement is true or false ANSWER FALSE
What information does a firm’s statement of cash flows provide to the viewing public? A) a report documenting a firm’s cash inflows and cash outflows from operating, financing, and investing activities for a defined period of time B) an itemization of all of a firm’s assets, liabilities, and equity for a defined period of time […]
Under the Truth in Lending Act, your financial loss due to a lost or stolen credit card is: A) zero. B) limited to $50. C) limited to $500. D) unlimited. ANSWER B
