· Question 1 4 out of 4 points Which one of the following terms is defined as dividends paid expressed as a percentage of net income? · Question 2 4 out of 4 points According to the Statement of Cash Flows a decrease in accounts receivable will _____ the cash flow from _____ activities. · Question 3 4 out of 4 points You are getting ready to prepare pro forma statements for your business. Which one of the following are you most apt to estimate first as you begin this process? · Question 4 Needs Grading Identify the four primary determinants of a firm’s growth and explain how each factor could either add to or limit the growth potential of a firm. · Question 5 5 out of 5 points You need $25 000 today and have decided to take out a loan at 7 percent for five years. Which one of the following loans would be the least expensive? Assume all loans require monthly payments and that interest is compounded on a monthly basis. · Question 6 4 out of 4 points Which one of the following is defined as a firm’s short-term assets and its short-term liabilities? · Question 7 4 out of 4 points Which one of the following policies most directly affects the projection of the retained earnings balance to be used on a pro forma statement? · Question 8 0 out of 5 points What is the relationship between present value and future value interest factors? · Question 9 4 out of 4 points Which one of the following terms is defined as the management of a firm’s long-term investments? · Question 10 5 out of 5 points An amortized loan: · Question 11 4 out of 4 points You are investing $100 today in a savings account at your local bank. Which one of the following terms refers to the value of this investment one year from now? · Question 12 Needs Grading Discuss the difference between book values and market values and explain which one is more important to the financial manager and why. · Question 13 Needs Grading List and briefly describe the three general areas of responsibility for a financial manager. · Question 14 4 out of 4 points Which one of the following is the financial statement that shows the accounting value of a firm’s equity as of a particular date? · Question 15 5 out of 5 points What is the future value of $7 189 invested for 23 years at 9.25 percent compounded annually? · Question 16 4 out of 4 points An increase in which one of the following will increase a firm’s quick ratio without affecting its cash ratio? · Question 17 5 out of 5 points An ordinary annuity is best defined by which one of the following? · Question 18 0 out of 4 points Over the past year the quick ratio for a firm increased while the current ratio remained constant. Given this information which one of the following must have occurred? Assume all ratios have positive values. · Question 19 4 out of 4 points The common set of standards and procedures by which audited financial statements are prepared is known as the: · Question 20 0 out of 4 points Which one of the following terms is defined as the mixture of a firm’s debt and equity financing? · Question 21 0 out of 4 points Russell’s Deli has cash of $136 accounts receivable of $87 accounts payable of $215 and inventory of $409. What is the value of the quick ratio? · Question 22 4 out of 4 points Steve invested $100 two years ago at 10 percent interest. The first year he earned $10 interest on his $100 investment. He reinvested the $10. The second year he earned $11 interest on his $110 investment. The extra $1 he earned in interest the second year is referred to as: · Question 23 4 out of 4 points Which term relates to the cash flow which results from a firm’s ongoing normal business activities?
