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Basic Accounting Multiple Choice Questions

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Question;1) The goal of the firm should be.A. maximization of profits B. maximization of shareholder wealth C. maximization of consumer satisfaction D. maximization of sales2) An example of a primary market transaction isA. a new issue of common stock by AT&T B. a sale of some outstanding common stock of AT&T C. AT&T repurchasing its own stock from a stockholder D. one stockholder selling shares of common stock to another individual3) According to the agency problem, _________ represent the principals of a corporation.A. shareholders B. managersC. employees D. suppliersSome textbook specify Shareholder as answer.4) Which of the following is a principle of basic financial management?A. Risk/return tradeoff B. Derivatives C. Stock warrants D. Profit is king5) Another name for the acid test ratio is theA. current ratio B. quick ratio C. inventory turnover ratio D. average collection period6) The accounting rate of return on stockholders? investments is measured byA. return on assets B. return on equity C. operating income return on investment D. realized rate of inflation7) If you are an investor, which of the following would you prefer?A. Earnings on funds invested compound annually B. Earnings on funds invested compound daily C. Earnings on funds invested would compound monthly D. Earnings on funds invested would compound quarterly8) The primary purpose of a cash budget is toA. determine the level of investment in current and fixed assets B. determine accounts payable C. provide a detailed plan of future cash flows D. determine the estimated income tax for the year9) Which of the following is a non-cash expense?A. Depreciation expenses B. Interest expense C. Packaging costs D. Administrative salaries10) The break-even model enables the manager of a firm toA. calculate the minimum price of common stock for certain situations B. set appropriate equilibrium thresholds C. determine the quantity of output that must be sold to cover all operating costs D. determine the optimal amount of debt financing to use

 

Paper#42820 | Written in 18-Jul-2015

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