Based on the information in Table 4-1, the current ratio is A) 1.98. B) 2.86. C) 1.92. D) 2.88. ANSWER A
Date: September 19th, 2020
A compound annuity involves depositing or investing a single sum of money and allowing it to compound for a certain number of years. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Siskiyou Corp. has cash of $75,000; short-term notes payable of $100,000; accounts receivables of $275,000; accounts payable of $135,000: inventories of $350,000; and accrued expenses of $75,000. What is the firm’s net working capital? A) $700,000 B) $175,000 C) $210,000 D) $390,000 ANSWER D
Date: September 19th, 2020
The current ratio of a firm would equal its quick ratio whenever A) the firm’s current ratio is equal to one. B) the firm’s inventory is equal to its current liabilities. C) the firm has no inventory. D) the firm’s inventory is equal to its other current assets. ANSWER C
Date: September 19th, 2020
A limited liability company (LLC) is taxed like a partnership but provides limited liability for its owners, similar to a corporation. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The investment banker performs what three basic functions? A) underwriting, advising, and price-pegging B) underwriting, distributing, and regulating C) underwriting, distributing, and negotiating D) underwriting, distributing, and advising ANSWER D
Date: September 19th, 2020
Which of the following statements about mobile home insurance is (are) true? I. Coverage for the mobile home may be written on either a replacement cost basis or an actual cash value basis, depending on how much the mobile home has depreciated. II. An additional coverage pays, up to a specified dollar limit, for the […]
Date: September 19th, 2020
Which of the following statements about the eligibility requirements for insuring mobile homes by endorsing a homeowners policy is (are) true? I. The mobile home must be designed for year-round living. II. The mobile home must be located in a fenced area with security guards. A) I only B) II only C) both I and […]
Date: September 19th, 2020
The future value of an annuity due is greater than the future value of an otherwise identical ordinary annuity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
If a firm were simply concerned with minimizing costs of incremental financing, then the straightforward choice would be: A) debt. B) new equity. C) retained earnings. D) half debt and half equity financing. ANSWER A
Date: September 19th, 2020
