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general business data bank

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Question;1. Activities of a firm which require the spending of;cash are known as;A. sources of cash.;B. uses of cash.;C. cash collections.;D. cash receipts.;E. cash on hand.;2. The sources and uses of cash over a stated period;of time are reflected on the;A. income statement.;B. balance sheet.;C. tax reconciliation statement.;D. statement of cash flows.;E. statement of operating position.;3. A common-size income statement is an accounting;statement that expresses all of a firm's expenses as percentage of;A. total assets.;B. total equity.;C. net income.;D. taxable income.;E. sales.;4. Which one of the following standardizes items on;the income statement and balance sheet relative to their values as of a common;point in time?;A. statement of standardization;B. statement of cash flows;C. common-base year statement;D. common-size statement;E. base reconciliation statement;5. Relationships determined from a firm's financial;information and used for comparison purposes are known as;A. financial ratios.;B. identities.;C. dimensional analysis.;D. scenario analysis.;E. solvency analysis.;6. The formula which breaks down the return on equity;into three component parts is referred to as which one of the following?;A. equity equation;B. profitability determinant;C. SIC formula;D. Du Pont identity;E. equity performance formula;7. The U.S. government coding system that classifies a;firm by the nature of its business operations is known as the;A. NASDAQ 100.;B. Standard & Poor's 500.;C. Standard Industrial Classification code.;D. Governmental ID code.;E. Government Engineered Coding System.;8. Which one of the following is a source of;cash?;A. increase in accounts receivable;B. decrease in notes payable;C. decrease in common stock;D. increase in accounts payable;E. increase in inventory;9. Which one of the following is a use of cash?;A. increase in notes payable;B. decrease in inventory;C. increase in long-term debt;D. decrease in accounts receivables;E. decrease in common stock;10. Which one of the following is a source of;cash?;A. repurchase of common stock;B. acquisition of debt;C. purchase of inventory;D. payment to a supplier;E. granting credit to a customer;11. Which one of the following is a source of;cash?;A. increase in accounts receivable;B. decrease in common stock;C. decrease in long-term debt;D. decrease in accounts payable;E. decrease in inventory;12. On the Statement of Cash Flows, which of the;following are considered financing activities?;I. increase in long-term debt;II. decrease in accounts payable;III. interest paid;IV. dividends paid;A. I and IV only;B. III and IV only;C. II and III only;D. I, III, and IV only;E. I, II, III, and IV;13. On the Statement of Cash Flows, which of the;following are considered operating activities?;I. costs of goods sold;II. decrease in accounts payable;III. interest paid;IV. dividends paid;A. I and III only;B. III and IV only;C. I, II, and III only;D. I, III, and IV only;E. I, II, III, and IV;14. According to the Statement of Cash Flows, a;decrease in accounts receivable will _____ the cash flow from;activities.;A. decrease, operating;B. decrease, financing;C. increase, operating;D. increase, financing;E. increase, investment;15. According to the Statement of Cash Flows, an;increase in interest expense will _____ the cash flow from;activities.;A. decrease, operating;B. decrease, financing;C. increase, operating;D. increase, financing;E. increase, investment;16. On a common-size balance sheet all accounts are;expressed as a percentage of;A. sales for the period.;B. the base year sales.;C. total equity for the base year.;D. total assets for the current year.;E. total assets for the base year.;17. On a common-base year financial statement;accounts receivables will be expressed relative to which one of the;following?;A. current year sales;B. current year total assets;C. base-year sales;D. base-year total assets;E. base-year accounts receivables;18. A firm uses 2008 as the base year for its;financial statements. The common-size, base-year statement for 2009 has an;inventory value of 1.08. This is interpreted to mean that the 2009 inventory is;equal to 108 percent of which one of the following?;A. 2008 inventory;B. 2008 total assets;C. 2009 total assets;D. 2008 inventory expressed as a percent of 2008 total assets;E. 2009 inventory expressed as a percent of 2009 total assets;19. Which of the following ratios are measures of a;firm's liquidity?;I. cash coverage ratio;II. interval measure;III. debt-equity ratio;IV. quick ratio;A. I and III only;B. II and IV only;C. I, III, and IV only;D. I, II, and III only;E. I, II, III, and IV;20. An increase in current liabilities will have which;one of the following effects, all else held constant? Assume all ratios have;positive values.;A. increase in the cash ratio;B. increase in the net working capital to total assets ratio;C. decrease in the quick ratio;D. decrease in the cash coverage ratio;E. increase in the current ratio;21. An increase in which one of the following will;increase a firm's quick ratio without affecting its cash ratio?;A. accounts payable;B. cash;C. inventory;D. accounts receivable;E. fixed assets;22. A supplier, who requires payment within ten days;should be most concerned with which one of the following ratios when granting;credit?;A. current;B. cash;C. debt-equity;D. quick;E. total debt;23. A firm has an interval measure of 48. This means;that the firm has sufficient liquid assets to do which one of the;following?;A. pay all of its debts that are due within the next 48 hours;B. pay all of its debts that are due within the next 48 days;C. cover its operating costs for the next 48 hours;D. cover its operating costs for the next 48 days;E. meet the demands of its customers for the next 48 hours;24. Over the past year, the quick ratio for a firm;increased while the current ratio remained constant. Given this information;which one of the following must have occurred? Assume all ratios have positive;values.;A. current assets increased;B. current assets decreased;C. inventory increased;D. inventory decreased;E. accounts payable increased;25. Ratios that measure a firm's financial leverage;are known as _____ ratios.;A. asset management;B. long-term solvency;C. short-term solvency;D. profitability;E. book value;26. Which one of the following statements is;correct?;A. If the total debt ratio is greater than.50, then the debt-equity ratio;must be less than 1.0.;B. Long-term creditors would prefer the times interest earned ratio be 1.4;rather than 1.5.;C. The debt-equity ratio can be computed as 1 plus the equity multiplier.;D. An equity multiplier of 1.2 means a firm has $1.20 in sales for every;$1 in equity.;E. An increase in the depreciation expense will not affect the cash;coverage ratio.;27. If a firm has a debt-equity ratio of 1.0, then its;total debt ratio must be which one of the following?;A. 0.0;B. 0.5;C. 1.0;D. 1.5;E. 2.0;28. The cash coverage ratio directly measures the;ability of a firm's revenues to meet which one of its following;obligations?;A. payment to supplier;B. payment to employee;C. payment of interest to a lender;D. payment of principle to a lender;E. payment of a dividend to a shareholder;29. Jasper United had sales of $21,000 in 2008 and;$24,000 in 2009. The firm's current accounts remained constant. Given this;information, which one of the following statements must be true?;A. The total asset turnover rate increased.;B. The days' sales in receivables increased.;C. The net working capital turnover rate increased.;D. The fixed asset turnover decreased.;E. The receivables turnover rate decreased.;30. The Corner Hardware has succeeded in increasing;the amount of goods it sells while holding the amount of inventory on hand at a;constant level. Assume that both the cost per unit and the selling price per;unit also remained constant. This accomplishment will be reflected in the;firm's financial ratios in which one of the following ways?;A. decrease in the inventory turnover rate;B. decrease in the net working capital turnover rate;C. no change in the fixed asset turnover rate;D. decrease in the day's sales in inventory;E. no change in the total asset turnover rate

 

Paper#51178 | Written in 18-Jul-2015

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