The Colorado Jet Boat Company had a cash balance of $3 million at the beginning of 2010. During 2010, Sales were $8 million and expenses were $7 million. Therefore, A) the cash balance at the end of 2010 must be less than $11 million. B) the cash balance at the end of 2010 must be […]
Date: September 19th, 2020
The ability to understand the short-term and long-term impact of investment decisions is a fundamental concept that a nonfinancial manager should understand in order to: A) better assess the current environment in which the firm operates. B) better assess future financing requirements. C) better understand the role of capital markets in raising long-term funds. D) […]
Date: September 19th, 2020
Reimbursement for spoilage of frozen food caused by failure of a refrigeration unit at a frozen foods processor can be covered under A) equipment breakdown insurance. B) extra expense insurance. C) builders risk insurance. D) difference in conditions insurance. ANSWER Answer: A
Date: September 19th, 2020
The Sarbanes-Oxley Act of 2002, in order to protect investors, requires a higher level of accountability for which of the following groups? A) public accountants B) boards of directors C) corporate officers D) all of the above ANSWER D
Date: September 19th, 2020
A company borrows $2,000,000 and uses the money to purchase high technology machinery for its operations. These are examples of A) cash flow from financing and cash flow from operations. B) cash flow from financing and cash flow from investing. C) cash flow from investing and cash flow from operations. D) cash flow from investing […]
Date: September 19th, 2020
Which of the following statements about ocean marine insurance coverages is (are) true? I. Hull insurance limits coverage to the breakdown of a ship’s machinery and equipment. II. Protection and indemnity insurance provides liability insurance to the ship owner for bodily injury and property damage to third parties. A) I only B) II only C) […]
Date: September 19th, 2020
The generation of cash budgets and and pro forma financial statements are equivalent ways of forecasting financial needs. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following statements describes a Difference in Conditions (DIC) Policy? A) It is a type of commercial umbrella liability policy. B) It is an open perils policy that covers perils not insured by basic property insurance contracts. C) It is designed to cover indirect losses for which the insured has direct damage coverage. […]
Date: September 19th, 2020
Portfolio performance is determined mainly by stock selection and market timing, with less emphasis on asset allocation. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which of the following is an advantage of the sole proprietorship? A) limited liability for its owners B) no significant legal requirements for starting the business C) double taxation for its owners D) easily transferred ownership ANSWER B
Date: September 19th, 2020
