Question 1

The three main sections of the statement of cash flows include all of the following EXCEPT:

Accepted Answer

A) cash from saving 
B) cash from investments 
C) cash from operations 
D) cash from financing 
E) all are included 
A) cash from saving 
B) cash from investments 
C) cash from operations 
D) cash from financing 
E) all are included

Question 2

Owners' equity may include:

Accepted Answer

A) common stockpar value of the common stock 
B) retained earnings 
C) surplus accountcapital paid in excess of par account 
D) all the above 
E) none of the above 
A) common stockpar value of the common stock 
B) retained earnings 
C) surplus accountcapital paid in excess of par account 
D) all the above 
E) none of the above

Question 3

The _______________ established the Public Company Accounting Oversight Board (PCAOB).

Accepted Answer

A) Smoot-Hawley Act 
B) Sarbanes-Oxley Act 
C) Gram-Harkins Act 
D) McKean-Obama Act 
E) none of the above 
A) Smoot-Hawley Act 
B) Sarbanes-Oxley Act 
C) Gram-Harkins Act 
D) McKean-Obama Act 
E) none of the above

Question 4

Which one of the following is not a basic function of financial management?

Accepted Answer

A) financial planning and analysis 
B) acquiring other business firms 
C) asset management 
D) raising of funds 
A) financial planning and analysis 
B) acquiring other business firms 
C) asset management 
D) raising of funds

Question 5

Accounting is primarily concerned with matching revenues and expenses while finance focuses on identifying cash inflows and outflows.

Accepted Answer

A) True 
 B)False

Question 6

Agency costs are:

Accepted Answer

A) the costs of hiring managers 
B) assets minus liabilities 
C) common stock price times number of shares outstanding 
D) none of the above 
A) the costs of hiring managers 
B) assets minus liabilities 
C) common stock price times number of shares outstanding 
D) none of the above

Question 7

Computation of a firm's market value added (MVA) includes all of the components EXCEPT:

Accepted Answer

A) market value of equity 
B) market value of debt 
C) book value of equity 
D) book value of debt 
E) all of the above are included 
A) market value of equity 
B) market value of debt 
C) book value of equity 
D) book value of debt 
E) all of the above are included

Question 8

Current liabilities would not include:

Accepted Answer

A) accounts payable 
B) notes payable 
C) bonds 
D) accruals 
A) accounts payable 
B) notes payable 
C) bonds 
D) accruals

Question 9

Poison pills are provisions in a corporate charter that make a corporate take-over more unattractive.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following accounts is usually part of the owners' equity for a corporation?

Accepted Answer

A) common stock 
B) paid-in-capital 
C) retained earnings 
D) all of the above 
A) common stock 
B) paid-in-capital 
C) retained earnings 
D) all of the above

Question 11

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

Question 12

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 13

Net income is:

Accepted Answer

A) equal to cash flow 
B) profits remaining after income taxes are paid 
C) unavailable to the owners of the business 
D) none of the above 
A) equal to cash flow 
B) profits remaining after income taxes are paid 
C) unavailable to the owners of the business 
D) none of the above

Question 14

The most desirable form of business organization from a liquidity standpoint is a corporation.

Accepted Answer

A) True 
 B)False

Question 15

Paid-in-capital in excess of par represents:

Accepted Answer

A) the net proceeds from the original sale of stock 
B) the proceeds in excess of par value from the original sale of stock 
C) the current market value of the stock 
D) the current book value of the stock 
E) none of the above 
A) the net proceeds from the original sale of stock 
B) the proceeds in excess of par value from the original sale of stock 
C) the current market value of the stock 
D) the current book value of the stock 
E) none of the above

Question 16

Agency problems 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 17

The goal of the firm is the maximization of profits and market share.

Accepted Answer

A) True 
 B)False

Question 18

On the income statement, gross profit is defined as: Similar to 67 and 68

Accepted Answer

A) operating profits minus operating expenses 
B) gross profit minus cost of goods sold 
C) sales revenue minus cost of goods sold 
D) sales revenue minus operating expenses 
E) none of the above 
A) operating profits minus operating expenses 
B) gross profit minus cost of goods sold 
C) sales revenue minus cost of goods sold 
D) sales revenue minus operating expenses 
E) none of the above

Question 19

Agency costs are the tangible and intangible revenues expenses borne by shareholders because of the actual or potential self-serving actions of managersgenerated by shareholders because of the actual or potential selfless actions of managers; and agency coststhey include only imexplicit , out-of-pocket (no cash is spent explicitly) expenses.

Accepted Answer

A) True 
 B)False

Question 20

Shareholder wealth may be defined as the price of a company's stock times the number of shares outstanding.

Accepted Answer

A) True 
 B)False

The three main sections of the statement of cash flows include all of the following EXCEPT:

Owners' equity may include:

The _______________ established the Public Company Accounting Oversight Board (PCAOB).

Which one of the following is not a basic function of financial management?

Accounting is primarily concerned with matching revenues and expenses while finance focuses on identifying cash inflows and outflows.

Agency costs are:

Computation of a firm's market value added (MVA) includes all of the components EXCEPT:

Current liabilities would not include:

Poison pills are provisions in a corporate charter that make a corporate take-over more unattractive.

Which of the following accounts is usually part of the owners' equity for a corporation?

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

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

Net income is:

The most desirable form of business organization from a liquidity standpoint is a corporation.

Paid-in-capital in excess of par represents:

Agency problems may result from a manager's concerns about any of the following except

The goal of the firm is the maximization of profits and market share.

On the income statement, gross profit is defined as: Similar to 67 and 68

Shareholder wealth may be defined as the price of a company's stock times the number of shares outstanding.

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

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Exam 13: Business Organization and Financial Data

The three main sections of the statement of cash flows include all of the following EXCEPT:

Owners' equity may include:

The _______________ established the Public Company Accounting Oversight Board (PCAOB).

Which one of the following is not a basic function of financial management?

Accounting is primarily concerned with matching revenues and expenses while finance focuses on identifying cash inflows and outflows.

Agency costs are:

Computation of a firm's market value added (MVA) includes all of the components EXCEPT:

Current liabilities would not include:

Poison pills are provisions in a corporate charter that make a corporate take-over more unattractive.

Which of the following accounts is usually part of the owners' equity for a corporation?

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

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

Net income is:

The most desirable form of business organization from a liquidity standpoint is a corporation.

Paid-in-capital in excess of par represents:

Agency problems may result from a manager's concerns about any of the following except

The goal of the firm is the maximization of profits and market share.

On the income statement, gross profit is defined as: Similar to 67 and 68

Shareholder wealth may be defined as the price of a company's stock times the number of shares outstanding.

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