Common-sized income statements A) compare companies with the same level of net income. B) compare companies with the same level of total sales. C) assist in the comparison of companies of different sizes. D) show each income statement account as a percentage of total assets. ANSWER C
Date: September 19th, 2020
Which of the following represents an attempt to measure the net results of the firm’s operations (revenues versus expenses) over a given time period? A) balance sheet B) income statement C) sources and uses of funds statement D) statement of cash flows ANSWER B
Date: September 19th, 2020
The time value of money is the opportunity cost of passing up the earning potential of a dollar today. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Financial ratios that are higher than industry averages may indicate problems that are as detrimental to the firm as ratios that are too low. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Financial analysis A) uses historical financial statements to measure a company’s performance and in making financial projections of future performance. B) is accounting record-keeping using generally accepted accounting principles. C) uses historical financial statements and is thus useful only to assess past performance. D) relies on generally accepted accounting principles to make comparisons between companies […]
Date: September 19th, 2020
Suppose XYZ Corporation is traded on the New York Stock Exchange. XYZ’s closing price on Monday is $20 per share. After the market closes on Monday, XYZ makes a surprise announcement that it has obtained a major new customer. XYZ’s stock will likely A) open above $20 because the positive news will result in a […]
Date: September 19th, 2020
Corporation B reported earnings per share of $10. Corporation B has 100,000 shares of common stock outstanding and reported an increase in owners’ equity of $400,000 for the period. Corporation B paid $50,000 in interest expense during the period. Corporation B paid dividends per share of A) $14.003. B) $6.00. C) $5.50. D) $6.50. […]
Date: September 19th, 2020
A wealthy private investor providing a direct transfer of funds is called A) a venture capitalist. B) an investment banker. C) an angel investor. D) a financial intermediary. ANSWER C
Date: September 19th, 2020
Which of the following statements about the liability limits of the PAP is (are) true? I. The policy can be written with split limits of liability. II. Prejudgment interest is considered part of the damage award and is subject to the policy limit of liability. A) I only B) II only C) both I and […]
Date: September 19th, 2020
Common examples of financial intermediaries include all of the following EXCEPT A) Pension Funds. B) Mutual Funds. C) Life Insurance Companies. D) Venture Capital Firms. ANSWER D
Date: September 19th, 2020
