Question 1

The accrued liabilities of a firm are:

Accepted Answer

A) retained earnings from past years 
B) reflect the prepayment of certain expenses 
C) owners' equity in the firm 
D) amounts owed but not yet due 
A) retained earnings from past years 
B) reflect the prepayment of certain expenses 
C) owners' equity in the firm 
D) amounts owed but not yet due

Question 2

The balance sheet is a statement of a company's financial position over an accounting period.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a use of cash?

Accepted Answer

A) an increase in an asset account 
B) a decrease in an asset account 
C) an increase in a liability account 
D) an increase in an equity account 
E) none of the above 
A) an increase in an asset account 
B) a decrease in an asset account 
C) an increase in a liability account 
D) an increase in an equity account 
E) none of the above

Question 4

Which form of business organization has a basic weakness of reaching a capital limit?

Accepted Answer

A) proprietorship 
B) partnership 
C) limited partnership 
D) all of the above 
A) proprietorship 
B) partnership 
C) limited partnership 
D) all of the above

Question 5

If a corporation liquidates in bankruptcy,creditors may attach the personal assets of the owners of the company.

Accepted Answer

A) True 
 B)False

Question 6

An annual report contains descriptive information on operating and financial performance during the past year,a discussion of current and future business opportunities,and five year projected stock prices and shareholder returns.

Accepted Answer

A) True 
 B)False

Question 7

Shareholder wealth is the market value of a firm's common stock.

Accepted Answer

A) True 
 B)False

Question 8

Under which one of the following business organizations do the owners have unlimited liability for all debts of the firm?

Accepted Answer

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

Question 9

Two basic tools that can be used to reduce the consequences of managers making self-serving decisions include offering managers stock options and offering managers restricted stock.

Accepted Answer

A) True 
 B)False

Question 10

Under partnership law,each partner has unlimited liability for all the debts of the firm.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following forms of organization has an unlimited life?

Accepted Answer

A) proprietorship 
B) LLC 
C) subchapter S corporation 
D) corporation 
E) two of the above have an unlimited life 
A) proprietorship 
B) LLC 
C) subchapter S corporation 
D) corporation 
E) two of the above have an unlimited life

Question 12

The agency problem may result from a manager's concerns about any of the following except

Accepted Answer

A) job security 
B) personal wealth 
C) corporate goals 
D) company provided perquisites 
E) none of the above 
A) job security 
B) personal wealth 
C) corporate goals 
D) company provided perquisites 
E) none of the above

Question 13

The average tax rate on a corporation with $75,000 in income and a tax liability of $15,000 is:

Accepted Answer

A) 15% 
B) 20% 
C) 25% 
D) 39% 
A) 15% 
B) 20% 
C) 25% 
D) 39%

Question 14

In the statement of cash flows,retained earnings are reported as two separate line items,which are __________ and ___________.

Accepted Answer

A) revenues and expenses 
B) assets and liabilities 
C) depreciation and amortization 
D) net profits and dividends 
E) none of the above 
A) revenues and expenses 
B) assets and liabilities 
C) depreciation and amortization 
D) net profits and dividends 
E) none of the above

Question 15

Top finance officers in a corporation may include:

Accepted Answer

A) treasurer 
B) chief financial officer 
C) controller 
D) all the above 
E) none of the above 
A) treasurer 
B) chief financial officer 
C) controller 
D) all the above 
E) none of the above

Question 16

The depreciation method currently used for tax purposes today is called the:

Accepted Answer

A) accelerated cost recovery system (ACRS) 
B) straight line method (SLM) 
C) modified accelerated cost recovery system (MACRS) 
D) double digit balance (DD
B)  
E) none of the above 
A) accelerated cost recovery system (ACRS) 
B) straight line method (SLM) 
C) modified accelerated cost recovery system (MACRS) 
D) double digit balance (DD
B)  
E) none of the above

Question 17

Agency costs may include:

Accepted Answer

A) costs of auditing financial statements 
B) liability insurance for board of directors 
C) management perks 
D) all the above 
E) none of the above 
A) costs of auditing financial statements 
B) liability insurance for board of directors 
C) management perks 
D) all the above 
E) none of the above

Question 18

The rule-setting body,which authorizes generally accepted accounting principles is:

Accepted Answer

A) GAAP 
B) FASB 
C) SEC 
D) Federal Reserve System 
E) none of the above 
A) GAAP 
B) FASB 
C) SEC 
D) Federal Reserve System 
E) none of the above

Question 19

Which of the following business organizations do not 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 20

On the balance sheet,total assets minus net fixed assets equals:

Accepted Answer

A) current assets 
B) current liabilities 
C) gross fixed assets 
D) total assets 
E) none of the above 
A) current assets 
B) current liabilities 
C) gross fixed assets 
D) total assets 
E) none of the above

The accrued liabilities of a firm are:

The balance sheet is a statement of a company's financial position over an accounting period.

Which of the following is a use of cash?

Which form of business organization has a basic weakness of reaching a capital limit?

If a corporation liquidates in bankruptcy,creditors may attach the personal assets of the owners of the company.

An annual report contains descriptive information on operating and financial performance during the past year,a discussion of current and future business opportunities,and five year projected stock prices and shareholder returns.

Shareholder wealth is the market value of a firm's common stock.

Under which one of the following business organizations do the owners have unlimited liability for all debts of the firm?

Two basic tools that can be used to reduce the consequences of managers making self-serving decisions include offering managers stock options and offering managers restricted stock.

Under partnership law,each partner has unlimited liability for all the debts of the firm.

Which of the following forms of organization has an unlimited life?

The agency problem may result from a manager's concerns about any of the following except

The average tax rate on a corporation with $75,000 in income and a tax liability of $15,000 is:

In the statement of cash flows,retained earnings are reported as two separate line items,which are and _.

Top finance officers in a corporation may include:

The depreciation method currently used for tax purposes today is called the:

Agency costs may include:

The rule-setting body,which authorizes generally accepted accounting principles is:

Which of the following business organizations do not limit the liability of some or all of their owners to the extent of their investment in the company?

On the balance sheet,total assets minus net fixed assets equals:

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 Valuation

Securities 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

The accrued liabilities of a firm are:

The balance sheet is a statement of a company's financial position over an accounting period.

Which of the following is a use of cash?

Which form of business organization has a basic weakness of reaching a capital limit?

If a corporation liquidates in bankruptcy,creditors may attach the personal assets of the owners of the company.

An annual report contains descriptive information on operating and financial performance during the past year,a discussion of current and future business opportunities,and five year projected stock prices and shareholder returns.

Shareholder wealth is the market value of a firm's common stock.

Under which one of the following business organizations do the owners have unlimited liability for all debts of the firm?

Two basic tools that can be used to reduce the consequences of managers making self-serving decisions include offering managers stock options and offering managers restricted stock.

Under partnership law,each partner has unlimited liability for all the debts of the firm.

Which of the following forms of organization has an unlimited life?

The agency problem may result from a manager's concerns about any of the following except

The average tax rate on a corporation with $75,000 in income and a tax liability of $15,000 is:

In the statement of cash flows,retained earnings are reported as two separate line items,which are __________ and ___________.

Top finance officers in a corporation may include:

The depreciation method currently used for tax purposes today is called the:

Agency costs may include:

The rule-setting body,which authorizes generally accepted accounting principles is:

Which of the following business organizations do not limit the liability of some or all of their owners to the extent of their investment in the company?

On the balance sheet,total assets minus net fixed assets equals:

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 Valuation

Securities 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

In the statement of cash flows,retained earnings are reported as two separate line items,which are and _.