When constructing pro forma balance sheets, ________ becomes the “plug” figure to make the balance sheet balance. A) new fixed assets required B) addition to retained earnings C) cash D) external funding required ANSWER D
Date: September 19th, 2020
All of the following measure liquidity EXCEPT A) inventory turnover. B) operating return on assets. C) current ratio. D) acid-test ratio. ANSWER B
Date: September 19th, 2020
Bill wants to buy a new boat in 7 years. He expects the new boat will cost $28,000. Bill has $18,000 in an investment account today. What rate of return must Bill earn on his investments to be able to buy the boat on time? What will be an ideal response? ANSWER 6.515% […]
Date: September 19th, 2020
Which of the following statements about the personal property coverage (Coverage C) of the Homeowners 3 policy is (are) true? I. There are special limits of liability that apply to certain types of personal property. II. The full amount of coverage applies only if the property is permanently located at any residence of the insured. […]
Date: September 19th, 2020
The December 31, 2009 balance sheet shows net fixed assets of $150,000 and the December 31, 2010 balance sheet shows net fixed assets of $250,000. Depreciation expense for 2009 is $25,000 and depreciation expense for 2010 is $35,000. Based on this information, the cost of fixed assets purchased during 2010 is A) $100,000. B) $160,000. […]
Date: September 19th, 2020
All of the following losses are subject to special limits of liability under the Homeowners 3 policy EXCEPT A) theft of firearms. B) destruction by fire of property used for business purposes. C) storm damage to a boat at a marina. D) furniture destroyed by a fire. ANSWER Answer: D
Date: September 19th, 2020
You just invested $50,000 into an account that earns 7 percent compounded annually. At the end of each year you can withdraw $4,971. How many years can you continue to make the withdrawals? What will be an ideal response? ANSWER 18 years
Date: September 19th, 2020
You are considering investing in a project with the following possible outcomes: States Probability of Occurrence Investment Returns State 1: Economic boom 18% 20% State 2: Economic growth 42% 16% State 3: Economic decline 30% 3% State 4: Depression 10% -25% Calculate the expected rate of return and standard deviation of returns for this investment, […]
Date: September 19th, 2020
Which of the following statements about the coverage for other structures (Coverage B) under the Homeowners 3 policy is true? A) The coverage applies to a detached garage or tool shed on the residence premises. B) Structures attached to the dwelling by a fence or utility line are considered to be part of the dwelling […]
Date: September 19th, 2020
A corporate treasurer is typically responsible for cash management, credit management, and raising capital. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
