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
Universal Financial, Inc. has total current assets of $1,200,000; long-term debt of $600,000; total current liabilities of $500,000; and long-term assets of $800,000. How much is the firm’s net working capital? A) $900,000 B) $600,000 C) $700,000 D) $1,000,000 ANSWER C
Date: September 19th, 2020
Which of the following is NOT a common characteristic of issuing long-term debt? A) Issuing long-term debt decreases uncertainty compared to a short-term fixed-rate issue. B) Issuing long-term debt provides more frequent financing opportunities. C) Long-term interest rates are typically HIGHER than short-term rates. D) Long-term debt may be preferred because short-term debt financing could […]
Date: September 19th, 2020
Which of the following statements about Coverage E: Personal Liability under the homeowners 3 policy is true? A) Losses attributable to personal injury are covered. B) The liability limit stated in the policy is an aggregate limit for the policy period. C) The insured must be legally liable for insurer to pay damages. D) Bodily […]
Date: September 19th, 2020
A pro forma balance sheet typically begins with liabilities and then we estimate the assets. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which of the following statements about investment banking in the United States is MOST correct? A) The top five banks involved in investment banking account for less than 25% of the industry’s total market share. B) The investment banking industry became more competitive following the financial crisis in 2007 and 2008. C) Investing banking is […]
Date: September 19th, 2020
Which of the following statements about Dwelling Property 1 (basic form) is true? A) Coverage on the dwelling is written on a replacement cost basis. B) The full amount of personal property coverage applies to property away from the insured premises. C) Coverage for fair rental value of the dwelling is subject to both an […]
Date: September 19th, 2020
Which statement regarding Section II of an unendoresed homeowners 3 policy is true? A) Liability arising from intentional property damage caused by the insured’s teenager is covered. B) Liability arising out of a home business is not covered. C) Medical expenses for the insured’s injured child are covered. D) First-aid expenses for injuries suffered by […]
Date: September 19th, 2020
Limited liability companies are more flexible than S-type Corporations because limited liability companies operate under state laws. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
