A cash budget is often more valuable as a SHORT-term rather than a LONG-TERM financial forecasting vehicle. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following types of forms is used to insure fluctuations in business personal property, such as inventory and finished goods? A) accounts receivable coverage form B) a value reporting form C) difference in conditions insurance D) business income insurance ANSWER Answer: B
Date: September 19th, 2020
Which of the following perils is not included in the causes-of-loss basic form of the ISO commercial package policy? A) fire B) lightning C) explosion D) flood ANSWER Answer: D
Date: September 19th, 2020
Financial managers should consider taking ________ financial risk when operating risk is high, but may consider taking ________ financial risk when operating risk is low. A) less; less B) less; more C) more; more D) more; less ANSWER B
Date: September 19th, 2020
On-The-Level Manufacturing buys materials on credit at the start of the month and pays in 60 days. They also sell on credit, bill customers at the beginning of the month, and receive payment 30 days later. Using Table 6.2, what is the net cash flow from purchases and sales for the month of February? A) […]
Date: September 19th, 2020
Some fundamental concepts that nonfinancial managers need to understand include: A) the ability to assess day-to-day cash management. B) the ability to assess future financing requirements. C) the ability to understand the role of capital markets in raising long-term funds. D) All of the above. ANSWER D
Date: September 19th, 2020
On an accrual basis income statement, revenues equal cash receipts and expenses equal cash expenditures. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
All of the following are extensions of coverage under the building and personal property coverage form EXCEPT A) newly acquired or constructed property. B) valuable papers and records. C) personal property temporarily off the premises. D) currency and securities. ANSWER Answer: D
Date: September 19th, 2020
A security with a beta of one has a required rate of return equal to the overall market rate of return. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
One of the additional coverages under the building and personal property coverage form is “increased cost of construction.” The coverage is payable if A) a skilled artisan is needed to duplicate the construction of the damaged property. B) a labor strike or materials shortage increases construction costs. C) an ordinance or building code increases the […]
Date: September 19th, 2020
