Which of the following is (are) covered under a claims-made policy? I. Claims arising out of occurrences which take place during the policy period, regardless of when the claim is made II. Claims first reported during the policy period, provided the event occurred after a retroactive date stated in the policy A) I only B) […]
Auto Loans R Them loans you $24,000 for four years to buy a car. The loan must be repaid in 48 equal monthly payments. The annual interest rate on the loan is 9 percent. What is the monthly payment? A) $543.79 B) $563.82 C) $597.24 D) $500.92 ANSWER C
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
Which of the following would NOT be a direct concern of working capital sensitivity? A) accounts receivable collection period B) inventory turnover C) annual tax obligations D) average age of accounts payable ANSWER C
The rate of return available on the next best investment alternative for the saver refers to the opportunity cost of funds. Indicate whether the statement is true or false ANSWER TRUE
You inherit $300,000 from your parents and want to use the money to supplement your retirement. You receive the money on your 65th birthday, the day you retire. You want to withdraw equal amounts at the end of each of the next 20 years. What constant amount can you withdraw each month and have nothing […]
The market rewards the patient investor, for between 1926 and 2008, there has never been a time when an investor lost money if she held an all-stock portfolio for ten years. Indicate whether the statement is true or false ANSWER TRUE
Financial managers work with the managers from the other functional areas of business. For example: When the financial manager provides funds for activities such as the development of products or services, they are probably working with which functional area? A) Human Resourses B) Information Technology C) Marketing D) Operations ANSWER D
Based on the information in Table 4-2, the times interest earned ratio is A) 4.88. B) 8.65. C) 11.48. D) 5.25. ANSWER B
