Question 1

Which of the following would not be considered an asset?

Accepted Answer

A)  cash 
B)  accounts receivable 
C)  equipment 
D)  accounts payable 
A)  cash 
B)  accounts receivable 
C)  equipment 
D)  accounts payable

Question 2

Amount of net income plus amount of depreciation is a source of cash flows.

Accepted Answer

A) True 
 B)False

Question 3

Owners of the firm.

Accepted Answer

A)  Investors 
B)  Principals 
C)  Agents 
D)  Operators 
A)  Investors 
B)  Principals 
C)  Agents 
D)  Operators

Question 4

Which of the following are required to file annual reports with the Securities and Exchange Commission?

Accepted Answer

A)  proprietorships 
B)  partnerships 
C)  public corporations 
D)  closely held corporations 
A)  proprietorships 
B)  partnerships 
C)  public corporations 
D)  closely held corporations

Question 5

Which of the following would not be a use of funds?

Accepted Answer

A)  increase in an asset account 
B)  decrease in a liability account 
C)  decrease in an equity account 
D)  increase in a liability account 
A)  increase in an asset account 
B)  decrease in a liability account 
C)  decrease in an equity account 
D)  increase in a liability account

Question 6

A guiding force behind top management's decisions should be what?

Accepted Answer

A)  Owner's goal statement 
B)  Bylaws 
C)  Principles statement 
D)  Mission statement 
A)  Owner's goal statement 
B)  Bylaws 
C)  Principles statement 
D)  Mission statement

Question 7

Which of the following business organizations limit the liability of some or all of their owners to the extent of their investment in the company?

Accepted Answer

A)  proprietorships and partnerships 
B)  corporations and proprietorships 
C)  limited partnerships and proprietorships 
D)  corporations and limited partnerships 
A)  proprietorships and partnerships 
B)  corporations and proprietorships 
C)  limited partnerships and proprietorships 
D)  corporations and limited partnerships

Question 8

Highly successful, rapidly growing firms are disproportionately manufacturers.

Accepted Answer

A) True 
 B)False

Question 9

Cash flows from financing activities might include:

Accepted Answer

A)  increase in bonds payable 
B)  increase in accounts payable 
C)  depreciation 
D)  reduction in notes receivable 
A)  increase in bonds payable 
B)  increase in accounts payable 
C)  depreciation 
D)  reduction in notes receivable

Question 10

Suppose Ningbo Steel had sales revenue of $10,000 sales revenue, cost of goods sold of $5,000, operating expenses of $3000, interest expense of $1,000, a tax rate of 20%, and 1,000 shares of common stock outstanding. Based on this information, net profit after tax was:

Accepted Answer

A)  $1,200 
B)  $1,000 
C)  $800 
D)  $400 
A)  $1,200 
B)  $1,000 
C)  $800 
D)  $400

Question 11

The financial statement that provides a snapshot view of the financial condition of a business at a point in time is the:

Accepted Answer

A)  balance sheet 
B)  income statement 
C)  statement of cash flows 
D)  statement of retained earnings 
A)  balance sheet 
B)  income statement 
C)  statement of cash flows 
D)  statement of retained earnings

Question 12

A statement that expresses the income statement items as a percent of total sales is called:

Accepted Answer

A)  a percentage of sales income statement 
B)  a cross-sectional income statement 
C)  a common size income statement 
D)  a ratio based income statement 
A)  a percentage of sales income statement 
B)  a cross-sectional income statement 
C)  a common size income statement 
D)  a ratio based income statement

Question 13

A mission statement is a subset of a vision statement.

Accepted Answer

A) True 
 B)False

Question 14

Information about which accounting principles were used by the firm are included in the:

Accepted Answer

A)  balance sheet 
B)  footnotes to the financial statements 
C)  management discussion on annual report 
D)  income statement 
A)  balance sheet 
B)  footnotes to the financial statements 
C)  management discussion on annual report 
D)  income statement

Question 15

Oversees the traditional functions of financial analysis, including capital budgeting, short-term and long-term financing decisions, and current asset management.

Accepted Answer

A)  Chief financial officer 
B)  Treasurer 
C)  Principle 
D)  Controller 
A)  Chief financial officer 
B)  Treasurer 
C)  Principle 
D)  Controller

Question 16

A partnership is a form of business organization when two or more people own a business operated for profit.

Accepted Answer

A) True 
 B)False

Question 17

A business organization that receives the limited liability of a corporation but is taxed as a proprietorship or partnership is called a:

Accepted Answer

A)  limited proprietorship 
B)  limited partnership 
C)  limited corporation 
D)  S corporation 
A)  limited proprietorship 
B)  limited partnership 
C)  limited corporation 
D)  S corporation

Question 18

Ningbo Steel had year end 2011 and 2012 retained earnings balances of $6,000,000 and $6,600,000 respectively. The firm paid $200,000 of dividends in 2011. Based on this information, Ningbo Steel's net profit after taxes in 2011 was:

Accepted Answer

A)  $200,000 
B)  $600,000 
C)  $620,000 
D)  $6,200,000 
A)  $200,000 
B)  $600,000 
C)  $620,000 
D)  $6,200,000

Question 19

The term ___________ conveys a relationship of equality between the assets of the business and the sources of funds for their acquisition.

Accepted Answer

A)  statement of cash flows 
B)  cash transactions statement 
C)  income statement 
D)  balance sheet 
A)  statement of cash flows 
B)  cash transactions statement 
C)  income statement 
D)  balance sheet

Question 20

Limited liability companies (LLC) have an unlimited life span.

Accepted Answer

A) True 
 B)False

Which of the following would not be considered an asset?

Amount of net income plus amount of depreciation is a source of cash flows.

Owners of the firm.

Which of the following are required to file annual reports with the Securities and Exchange Commission?

Which of the following would not be a use of funds?

A guiding force behind top management's decisions should be what?

Which of the following business organizations limit the liability of some or all of their owners to the extent of their investment in the company?

Highly successful, rapidly growing firms are disproportionately manufacturers.

Cash flows from financing activities might include:

Suppose Ningbo Steel had sales revenue of $10,000 sales revenue, cost of goods sold of $5,000, operating expenses of $3000, interest expense of $1,000, a tax rate of 20%, and 1,000 shares of common stock outstanding. Based on this information, net profit after tax was:

The financial statement that provides a snapshot view of the financial condition of a business at a point in time is the:

A statement that expresses the income statement items as a percent of total sales is called:

A mission statement is a subset of a vision statement.

Information about which accounting principles were used by the firm are included in the:

Oversees the traditional functions of financial analysis, including capital budgeting, short-term and long-term financing decisions, and current asset management.

A partnership is a form of business organization when two or more people own a business operated for profit.

A business organization that receives the limited liability of a corporation but is taxed as a proprietorship or partnership is called a:

Ningbo Steel had year end 2011 and 2012 retained earnings balances of $6,000,000 and $6,600,000 respectively. The firm paid $200,000 of dividends in 2011. Based on this information, Ningbo Steel's net profit after taxes in 2011 was:

The term ___________ conveys a relationship of equality between the assets of the business and the sources of funds for their acquisition.

Limited liability companies (LLC) have an unlimited life span.

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuations

Securities and Markets

Financial Return and Risk Concepts

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters

Exam 13: Business Organization and Financial Data

Which of the following would not be considered an asset?

Amount of net income plus amount of depreciation is a source of cash flows.

Owners of the firm.

Which of the following are required to file annual reports with the Securities and Exchange Commission?

Which of the following would not be a use of funds?

A guiding force behind top management's decisions should be what?

Which of the following business organizations limit the liability of some or all of their owners to the extent of their investment in the company?

Highly successful, rapidly growing firms are disproportionately manufacturers.

Cash flows from financing activities might include:

Suppose Ningbo Steel had sales revenue of $10,000 sales revenue, cost of goods sold of $5,000, operating expenses of $3000, interest expense of $1,000, a tax rate of 20%, and 1,000 shares of common stock outstanding. Based on this information, net profit after tax was:

The financial statement that provides a snapshot view of the financial condition of a business at a point in time is the:

A statement that expresses the income statement items as a percent of total sales is called:

A mission statement is a subset of a vision statement.

Information about which accounting principles were used by the firm are included in the:

Oversees the traditional functions of financial analysis, including capital budgeting, short-term and long-term financing decisions, and current asset management.

A partnership is a form of business organization when two or more people own a business operated for profit.

A business organization that receives the limited liability of a corporation but is taxed as a proprietorship or partnership is called a:

Ningbo Steel had year end 2011 and 2012 retained earnings balances of $6,000,000 and $6,600,000 respectively. The firm paid $200,000 of dividends in 2011. Based on this information, Ningbo Steel's net profit after taxes in 2011 was:

The term ___________ conveys a relationship of equality between the assets of the business and the sources of funds for their acquisition.

Limited liability companies (LLC) have an unlimited life span.

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuations

Securities and Markets

Financial Return and Risk Concepts

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters