If the interest rate is positive, a six-year ordinary annuity of $500 per year must have a present value over $3,000. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
In general, financial managers are concerned with which of the following? A) Creating economic wealth B) Making investment decisions that optimize economic value C) Making business decisions that optimize economic wealth D) All of the above ANSWER D
Date: September 19th, 2020
Which of the following best describes the role of financial managers? A) Maximization of the total market value of the firm’s common stock B) Profit maximization C) Risk minimization D) None of the above ANSWER A
Date: September 19th, 2020
Perils insured under Dwelling Property 1 (basic form) include which of the following? I. Earthquake II. Smoke A) I only B) II only C) both I and II D) neither I nor II ANSWER Answer: B
Date: September 19th, 2020
A firm’s ending equity equals the firms beginning equity less any change in long-term debt. 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
