Each functional area is, in some way, involved in the generation or consumption of cash. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Based on the information in Table 4-2, the acid-test ratio is A) 2.15. B) 1.39. C) 1.33. D) 1.17. ANSWER D
Date: September 19th, 2020
It is your 6th birthday today. You have a trust fund with $50,000 that is earning 8% per year. You expect to withdraw $30,000 per year for 7 years starting on your 22nd birthday for graduate school. How much money will be left in the trust fund after your last withdrawal (rounded to the nearest […]
Date: September 19th, 2020
Which of the following statements about the businessowners policy is (are) true? I. It is designed to meet the insurance needs of large manufacturing firms. II. It is a package policy designed to meet the basic property and liability needs of an insured in a single contract. A) I only B) II only C) both […]
Date: September 19th, 2020
Use the following information to calculate the change in the company’s cash balance for the year. Credit Sales $800,000 Cash Sales $500,000 Operating Expenses on Credit $200,000 Cash Operating Expenses $700,000 Accounts Receivable (Beg. of Year) $50,000 Accounts Receivable (End of Year) $80,000 Accounts Payable (Beg. of Year) $50,000 Accounts Payable (End of Year) $100,000 […]
Date: September 19th, 2020
Forecasted net cash flows are the difference between forecasted cash inflows and forecasted cash outflows. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Assessing the current business environment is NOT a fundamental concept related to financial management. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
When a firm issues debt instead of equity to finance a new project, A) bondholders take on additional voting control as a result of their ownership of the debt instruments. B) shareholders share voting rights with bondholders. C) shareholders maintain voting control of the company but may face additional restrictive covenants found in the bond […]
Date: September 19th, 2020
Based on the information in Table 4-2, the current ratio is A) 2.46. B) 2.23. C) 2.35. D) 2.97. ANSWER C
Date: September 19th, 2020
One inland marine coverage form is the accounts receivable coverage form. In which of the following cases would the purchaser of this form (the insured) be indemnified through the coverage? A) if the insured cannot pay amounts owed because the purchaser has become insolvent B) if the insured cannot pay amounts owed because the purchaser […]
Date: September 19th, 2020
