Question 1

Which one of the following financial statements conveys shows a relationship of equality between assets and liabilities plus owners' equity?

Accepted Answer

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

Question 2

Most of theAll limited liability company shareholders must take active roles in managing the company.

Accepted Answer

A) True 
 B)False

Question 3

The bylaws are the rules established to govern the corporation and include how the firm will be managed.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) 	maximizing long-term shareholder wealth 
B) 	personal wealth 
C) 	embezzlement 
D) 	company provided perquisites 
E) 	none of the above 
A) 	maximizing long-term shareholder wealth 
B) 	personal wealth 
C) 	embezzlement 
D) 	company provided perquisites 
E) 	none of the above

Question 5

The Sarbanes-Oxley Act of 2002 was passed by the U.S.Congress in response several accounting scandals.

Accepted Answer

A) True 
 B)False

Question 6

All of the following accounts are considered to be fixed assets on the balance sheet except:

Accepted Answer

A) buildings 
B) equipment 
C) marketable securitiesdepreciation 
D) machinery 
E) all of the above are fixed assets 
A) buildings 
B) equipment 
C) marketable securitiesdepreciation 
D) machinery 
E) all of the above are fixed assets

Question 7

All of the following accounts are considered to be current assets on the balance sheet except:

Accepted Answer

A) cash 
B) accruals 
C) accounts receivable 
D) inventory 
E) none of the above 
A) cash 
B) accruals 
C) accounts receivable 
D) inventory 
E) none of the above

Question 8

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) all the above are uses of funds 
A) increase in an asset account 
B) decrease in a liability account 
C) decrease in an equity account 
D) all the above are uses of funds

Question 9

Nestle, IBM, and Coca-Cola are examples of: Not in the chapter

Accepted Answer

A) U.S.corporations 
B) corporations with mainly domestic revenues 
C) "stateless" corporations 
D) multinational corporations based in the U.S. 
A) U.S.corporations 
B) corporations with mainly domestic revenues 
C) "stateless" corporations 
D) multinational corporations based in the U.S.

Question 10

The balance sheet equation or accounting identity can be written as: assets equal liabilities plus owners' equity.

Accepted Answer

A) True 
 B)False

Question 11

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 12

The U.S.federal government body that regulates the sale and listing of securities on U.S.financial markets is the:receives corporations' annual reports is the:

Accepted Answer

A) IRS 
B) FRS 
C) SEC 
D) FBI 
E) none of the above 
A) IRS 
B) FRS 
C) SEC 
D) FBI 
E) none of the above

Question 13

A weakness for a proprietorship is that owner's liability for debts of the firm is unlimited.

Accepted Answer

A) True 
 B)False

Question 14

The statement of retained earnings includes all of the following accounts within the statement except:

Accepted Answer

A) interest expense 
B) net profits after taxes 
C) preferred stock dividends 
D) common stock dividends 
E) all of the above are included 
A) interest expense 
B) net profits after taxes 
C) preferred stock dividends 
D) common stock dividends 
E) all of the above are included

Question 15

Common-size financial statements express balance sheet and income statement numbers as a percent of sales.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Agency costs are the tangible and intangible expenses borne by shareholders because of the actual or potential self-serving actions of managers; and agency costs can include explicit, out-of-pocket expenses.

Accepted Answer

A) True 
 B)False

Question 18

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 19

The liability of all owners in both a limited liability company and a limited partnership is limited to the owners' investment in the company.

Accepted Answer

A) True 
 B)False

Question 20

Market value added would equal:

Accepted Answer

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

Which one of the following financial statements conveys shows a relationship of equality between assets and liabilities plus owners' equity?

Most of theAll limited liability company shareholders must take active roles in managing the company.

The bylaws are the rules established to govern the corporation and include how the firm will be managed.

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

The Sarbanes-Oxley Act of 2002 was passed by the U.S.Congress in response several accounting scandals.

All of the following accounts are considered to be fixed assets on the balance sheet except:

All of the following accounts are considered to be current assets on the balance sheet except:

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

Nestle, IBM, and Coca-Cola are examples of: Not in the chapter

The balance sheet equation or accounting identity can be written as: assets equal liabilities plus owners' equity.

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.

The U.S.federal government body that regulates the sale and listing of securities on U.S.financial markets is the:receives corporations' annual reports is the:

A weakness for a proprietorship is that owner's liability for debts of the firm is unlimited.

The statement of retained earnings includes all of the following accounts within the statement except:

Common-size financial statements express balance sheet and income statement numbers as a percent of sales.

Which of the following would not be considered an asset?

Agency costs are the tangible and intangible expenses borne by shareholders because of the actual or potential self-serving actions of managers; and agency costs can include explicit, out-of-pocket expenses.

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?

The liability of all owners in both a limited liability company and a limited partnership is limited to the owners' investment in the company.

Market value added would equal:

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

Which one of the following financial statements conveys shows a relationship of equality between assets and liabilities plus owners' equity?

Most of theAll limited liability company shareholders must take active roles in managing the company.

The bylaws are the rules established to govern the corporation and include how the firm will be managed.

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

The Sarbanes-Oxley Act of 2002 was passed by the U.S.Congress in response several accounting scandals.

All of the following accounts are considered to be fixed assets on the balance sheet except:

All of the following accounts are considered to be current assets on the balance sheet except:

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

Nestle, IBM, and Coca-Cola are examples of: Not in the chapter

The balance sheet equation or accounting identity can be written as: assets equal liabilities plus owners' equity.

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.

The U.S.federal government body that regulates the sale and listing of securities on U.S.financial markets is the:receives corporations' annual reports is the:

A weakness for a proprietorship is that owner's liability for debts of the firm is unlimited.

The statement of retained earnings includes all of the following accounts within the statement except:

Common-size financial statements express balance sheet and income statement numbers as a percent of sales.

Which of the following would not be considered an asset?

Agency costs are the tangible and intangible expenses borne by shareholders because of the actual or potential self-serving actions of managers; and agency costs can include explicit, out-of-pocket expenses.

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?

The liability of all owners in both a limited liability company and a limited partnership is limited to the owners' investment in the company.

Market value added would equal:

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