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
The Sarbanes-Oxley Act of 2002 holds all of the following groups strictly accountable in a legal sense for any instances of misconduct EXCEPT A) investors. B) outside members of the board of directors. C) company officers. D) lawyers. ANSWER A
Date: September 19th, 2020
Accounting supports financial managers by providing all of the following EXCEPT: A) identifying relevant data related to the activities of the firm. B) presenting data in an agreed-upon and standardized form known as generally accepted accounting practices. C) summarizing the firm’s economic activity in the form of financial statements. D) generating revenue for the firm. […]
Date: September 19th, 2020
XYZ Corporation has a P/E ratio of 20 and EFG Corporation has a P/E ratio of 10. It is likely that A) investors expect XYZ’s earnings to grow faster than EFG’s earnings. B) investors believe XYZ stock is overvalued. C) investors believe that for the same level of earnings growth, XYZ is a higher risk […]
Date: September 19th, 2020
The beta of a T-bill is one. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
You estimate you’ll need $200,000 per year for 25 years starting on your 65th birthday to live on during your retirement. Today is your 50th birthday and you want to make equal deposits into an account paying 9% interest per year, the first deposit today and the last deposit on your 64th birthday. How much […]
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
