Question 1

Which one of the following is an ownership interest in a firm?

Accepted Answer

A)  asset 
B)  expense 
C)  net income 
D)  liability 
E)  equity 
A)  asset 
B)  expense 
C)  net income 
D)  liability 
E)  equity E

Question 2

Better Products just filed its quarterly report with the SEC.This report is referred to as which one of the following?

Accepted Answer

A)  10F 
B)  10K 
C)  10Q 
D)  EDGAR 10 
E)  10FD 
A)  10F 
B)  10K 
C)  10Q 
D)  EDGAR 10 
E)  10FD C

Question 3

Sander's Corner Market had annual sales of $426,000 and total assets of $345,000.What is the return on assets if the profit margin is 8 percent?

Accepted Answer

A)  8.23 percent 
B)  9.88 percent 
C)  10.62 percent 
D)  11.01 percent 
E)  12.87 percent 
A)  8.23 percent 
B)  9.88 percent 
C)  10.62 percent 
D)  11.01 percent 
E)  12.87 percent B

Question 4

A firm has $4,500 of cash,equipment worth $42,000,inventory of $16,700,$12,200 worth of patents,and $15,500 of accounts receivable.What is the value of the total current assets?

Accepted Answer

A)  $2,500 
B)  $24,700 
C)  $36,700 
D)  $40,000 
E)  $62,900 
A)  $2,500 
B)  $24,700 
C)  $36,700 
D)  $40,000 
E)  $62,900

Question 5

Net income is equal to which one of the following?

Accepted Answer

A)  operating income plus interest expense minus taxes 
B)  gross profit minus depreciation and interest expense 
C)  pretax income plus income taxes 
D)  dividends plus the change in retained earnings 
E)  pretax income minus taxes and dividends 
A)  operating income plus interest expense minus taxes 
B)  gross profit minus depreciation and interest expense 
C)  pretax income plus income taxes 
D)  dividends plus the change in retained earnings 
E)  pretax income minus taxes and dividends

Question 6

Which one of the following is used to pay dividends or kept as retained earnings by a firm?

Accepted Answer

A)  equity 
B)  net cash flow 
C)  revenue 
D)  net income 
E)  expense 
A)  equity 
B)  net cash flow 
C)  revenue 
D)  net income 
E)  expense

Question 7

Sweet Tree Cookies has current net income of $268,000 of which $110,000 was paid out in dividends.The remaining $158,000 will be shown in which account on the firm's financial statements for next year?

Accepted Answer

A)  long-term debt 
B)  common stock 
C)  net income 
D)  retained earnings 
E)  paid in surplus 
A)  long-term debt 
B)  common stock 
C)  net income 
D)  retained earnings 
E)  paid in surplus

Question 8

Zonvier,Inc.has sales of $53,800,a profit margin of 10.5 percent,and a plowback ratio of 40 percent.The company has 15,000 shares of stock outstanding.The firm uses the percentage of sales method for pro forma statements and estimates next year's sales will increase by 15 percent.What is the dividend per share expected to be next year?

Accepted Answer

A)  $0.249 
B)  $0.250 
C)  $0.260 
D)  $0.268 
E)  $0.274 
A)  $0.249 
B)  $0.250 
C)  $0.260 
D)  $0.268 
E)  $0.274

Question 9

Carter's Books,Inc.has net income of $75,000 and a plowback ratio of 80 percent.There are 30,000 shares of stock outstanding at a market price of $25.50 a share.What is the price-earnings ratio?

Accepted Answer

A)  6.9 
B)  8.2 
C)  9.7 
D)  10.2 
E)  11.6 
A)  6.9 
B)  8.2 
C)  9.7 
D)  10.2 
E)  11.6

Question 10

For the year,Widgets Manufacturing,Inc.increased its current assets accounts by $45,000,decreased its current liabilities by $37,000,and decreased its fixed assets by $48,000.What is the investment cash flow for the year?

Accepted Answer

A)  -$31,000 
B)  -$12,000 
C)  $19,000 
D)  $31,000 
E)  $48,000 
A)  -$31,000 
B)  -$12,000 
C)  $19,000 
D)  $31,000 
E)  $48,000

Question 11

How frequently do corporations file 10K reports with the SEC?

Accepted Answer

A)  monthly 
B)  quarterly 
C)  semi-annually 
D)  annually 
E)  only when the firm engages in a merger or an acquisition 
A)  monthly 
B)  quarterly 
C)  semi-annually 
D)  annually 
E)  only when the firm engages in a merger or an acquisition

Question 12

Which one of the following is most apt to vary directly with sales?

Accepted Answer

A)  current assets 
B)  long-term debt 
C)  shareholders' equity 
D)  paid-in capital 
E)  retained earnings 
A)  current assets 
B)  long-term debt 
C)  shareholders' equity 
D)  paid-in capital 
E)  retained earnings

Question 13

A decrease in which one of the following will increase the gross margin?

Accepted Answer

A)  taxes 
B)  sales 
C)  depreciation 
D)  variable costs 
E)  fixed costs 
A)  taxes 
B)  sales 
C)  depreciation 
D)  variable costs 
E)  fixed costs

Question 14

A company has a price-earnings ratio of 21 and a price-cash flow ratio of 12.If the earnings per share are $1.75,what is the cash flow per share?

Accepted Answer

A)  $2.16 
B)  $2.51 
C)  $3.06 
D)  $3.14 
E)  $3.50 
A)  $2.16 
B)  $2.51 
C)  $3.06 
D)  $3.14 
E)  $3.50

Question 15

HBB Manufacturing,Inc.has 275,000 shares of stock outstanding.The firm paid out $275,000 in dividends,$195,000 in interest,and added $150,000 to retained earnings for the year.What is the amount of the earnings per share?

Accepted Answer

A)  $0.70 
B)  $0.78 
C)  $1.55 
D)  $1.63 
E)  $1.76 
A)  $0.70 
B)  $0.78 
C)  $1.55 
D)  $1.63 
E)  $1.76

Question 16

A firm maintains a constant dividend payout ratio of 0.45.What must the plowback ratio be?

Accepted Answer

A)  1 + 0.45 
B)  1 - 0.45 
C)  1 × 0.45 
D)  1 / 0.45 
E)  0.45 
A)  1 + 0.45 
B)  1 - 0.45 
C)  1 × 0.45 
D)  1 / 0.45 
E)  0.45

Question 17

Children's Books,Inc.has net income of $50,000 and a plowback ratio of 80 percent.There are 22,000 shares of stock outstanding at a market price of $18.64 a share.What is the price-earnings ratio?

Accepted Answer

A)  6.9 
B)  8.2 
C)  9.7 
D)  11.1 
E)  11.6 
A)  6.9 
B)  8.2 
C)  9.7 
D)  11.1 
E)  11.6

Question 18

Which one of the following is the cash flow resulting from the payment of dividends and the issuance or repurchase of equity securities?

Accepted Answer

A)  balance sheet cash flow 
B)  operating cash flow 
C)  financing cash flow 
D)  business cash flow 
E)  investment cash flow 
A)  balance sheet cash flow 
B)  operating cash flow 
C)  financing cash flow 
D)  business cash flow 
E)  investment cash flow

Question 19

Which one of the following represents the amounts owed by a firm to other parties?

Accepted Answer

A)  assets 
B)  cash inflows 
C)  equities 
D)  liabilities 
E)  expenses 
A)  assets 
B)  cash inflows 
C)  equities 
D)  liabilities 
E)  expenses

Question 20

Which one of the following is an accounting statement that provides information on a firm's revenues and expenses?

Accepted Answer

A)  balance sheet 
B)  cash budget 
C)  pro-forma balance sheet 
D)  income statement 
E)  cash flow statement 
A)  balance sheet 
B)  cash budget 
C)  pro-forma balance sheet 
D)  income statement 
E)  cash flow statement

Which one of the following is an ownership interest in a firm?

Better Products just filed its quarterly report with the SEC.This report is referred to as which one of the following?

Sander's Corner Market had annual sales of $426,000 and total assets of $345,000.What is the return on assets if the profit margin is 8 percent?

A firm has $4,500 of cash,equipment worth $42,000,inventory of $16,700,$12,200 worth of patents,and $15,500 of accounts receivable.What is the value of the total current assets?

Net income is equal to which one of the following?

Which one of the following is used to pay dividends or kept as retained earnings by a firm?

Sweet Tree Cookies has current net income of $268,000 of which $110,000 was paid out in dividends.The remaining $158,000 will be shown in which account on the firm's financial statements for next year?

Carter's Books,Inc.has net income of $75,000 and a plowback ratio of 80 percent.There are 30,000 shares of stock outstanding at a market price of $25.50 a share.What is the price-earnings ratio?

For the year,Widgets Manufacturing,Inc.increased its current assets accounts by $45,000,decreased its current liabilities by $37,000,and decreased its fixed assets by $48,000.What is the investment cash flow for the year?

How frequently do corporations file 10K reports with the SEC?

Which one of the following is most apt to vary directly with sales?

A decrease in which one of the following will increase the gross margin?

A company has a price-earnings ratio of 21 and a price-cash flow ratio of 12.If the earnings per share are $1.75,what is the cash flow per share?

HBB Manufacturing,Inc.has 275,000 shares of stock outstanding.The firm paid out $275,000 in dividends,$195,000 in interest,and added $150,000 to retained earnings for the year.What is the amount of the earnings per share?

A firm maintains a constant dividend payout ratio of 0.45.What must the plowback ratio be?

Children's Books,Inc.has net income of $50,000 and a plowback ratio of 80 percent.There are 22,000 shares of stock outstanding at a market price of $18.64 a share.What is the price-earnings ratio?

Which one of the following is the cash flow resulting from the payment of dividends and the issuance or repurchase of equity securities?

Which one of the following represents the amounts owed by a firm to other parties?

Which one of the following is an accounting statement that provides information on a firm's revenues and expenses?

A Brief History of Risk and Return

The Investment Process

Overview of Security Types

Mutual Funds and Other Investment Companies

The Stock Market

Common Stock Valuation

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Diversification and Risky Asset Allocation

Return,Risk,and the Security Market Line

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Corporate and Government Bonds

Global Economic Activity and Industry Analysis

Mortgage-Backed Securities

Filters

Exam 17: Projecting Cash Flow and Earnings

Which one of the following is an ownership interest in a firm?

Better Products just filed its quarterly report with the SEC.This report is referred to as which one of the following?

Sander's Corner Market had annual sales of $426,000 and total assets of $345,000.What is the return on assets if the profit margin is 8 percent?

A firm has $4,500 of cash,equipment worth $42,000,inventory of $16,700,$12,200 worth of patents,and $15,500 of accounts receivable.What is the value of the total current assets?

Net income is equal to which one of the following?

Which one of the following is used to pay dividends or kept as retained earnings by a firm?

Sweet Tree Cookies has current net income of $268,000 of which $110,000 was paid out in dividends.The remaining $158,000 will be shown in which account on the firm's financial statements for next year?

Carter's Books,Inc.has net income of $75,000 and a plowback ratio of 80 percent.There are 30,000 shares of stock outstanding at a market price of $25.50 a share.What is the price-earnings ratio?

For the year,Widgets Manufacturing,Inc.increased its current assets accounts by $45,000,decreased its current liabilities by $37,000,and decreased its fixed assets by $48,000.What is the investment cash flow for the year?

How frequently do corporations file 10K reports with the SEC?

Which one of the following is most apt to vary directly with sales?

A decrease in which one of the following will increase the gross margin?

A company has a price-earnings ratio of 21 and a price-cash flow ratio of 12.If the earnings per share are $1.75,what is the cash flow per share?

HBB Manufacturing,Inc.has 275,000 shares of stock outstanding.The firm paid out $275,000 in dividends,$195,000 in interest,and added $150,000 to retained earnings for the year.What is the amount of the earnings per share?

A firm maintains a constant dividend payout ratio of 0.45.What must the plowback ratio be?

Children's Books,Inc.has net income of $50,000 and a plowback ratio of 80 percent.There are 22,000 shares of stock outstanding at a market price of $18.64 a share.What is the price-earnings ratio?

Which one of the following is the cash flow resulting from the payment of dividends and the issuance or repurchase of equity securities?

Which one of the following represents the amounts owed by a firm to other parties?

Which one of the following is an accounting statement that provides information on a firm's revenues and expenses?

A Brief History of Risk and Return

The Investment Process

Overview of Security Types

Mutual Funds and Other Investment Companies

The Stock Market

Common Stock Valuation

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Diversification and Risky Asset Allocation

Return,Risk,and the Security Market Line

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Corporate and Government Bonds

Global Economic Activity and Industry Analysis

Mortgage-Backed Securities

Filters