Details of this Paper

FINC400 quiz 3

Description

solution


Question

Question;FINC400 week 3 quiz;The quiz is accessible once and is available;for the duration of 1.5-hours. Please do not exit from the quiz unless it has;been completed, as it will not be accessible again.;Question 1;of 25;4.0 Points;As a general rule, it is desirable to finance the;permanent assets, including "permanent current assets", with;long-term debt and equity.;True;False;Question 2 of 25;4.0;Points;Short-term interest rates are;generally lower than long-term interest rates.;A. True;B. False;Question 3 of 25;4.0;Points;Commercial bank term loans;A.usually carry fixed interest;rates.;B.are very short-term in nature.;C.are offered to superior credit;applicants.;D.both b and c.;Question 4 of 25;4.0;Points;Dun & Bradstreet is known for;providing;A.interest rate information to cash;managers.;B.credit scoring reports that rank a;company's payment habits relative to its peer group.;C.cash management systems to;corporate treasurers.;D.consumer credit reports to credit;card companies;Question 5 of 25;4.0;Points;Small companies finance a;relatively greater proportion of their assets through trade credit than do;larger concerns.;A. True;B. False;Question 6 of 25;4.0 Points;A financial executive devotes the most time to;A.Long-range planning.;B.Capital budgeting.;C.Short-term financing.;D.Working capital management.;Question 7 of 25;4.0;Points;Short-term financing is risky;because of the possibility of rising short-term rates and the inability of;always being able to refund short-term debt.;A. True;B. False;Question 8 of 25;4.0;Points;From the banker's point of view;short-term bank credit is an excellent way of financing;A.fixed assets.;B.permanent working capital needs.;C.repayment of long-term debt.;D.seasonal bulges in inventory and;receivables.;Question 9 of 25;4.0;Points;One of the first considerations;in cash management is;A.to have as much cash as possible;on hand.;B.synchronization of cash inflows;and cash outflows.;C.profitability.;D.to put any excess cash into;accounts receivable.;uestion 10 of 25;4.0;Points;Cash balances are usually;determined by the amount of cash flowing through the firm on a yearly basis.;True;False;Seasonal production;allows for maximum efficiency in machinery and manpower use.;A.;True;B.;False;Question 12 of 25;4.0;Points;Even during slack loan periods;banks will never loan out money at an interest rate lower than the prime rate;because the prime rate is their best rate.;A. True;B. False;Question 13 of 25;4.0;Points;The use of cash budgeting;procedures;A.helps the firm plan its current;asset levels for a given production plan.;B.makes managing inventory easier;under seasonal production.;C.;illustrates fluctuating levels of current assets for a;given production plan.;D.all of these are correct.;Question 14 of 25;4.0;Points;Permanent current assets are;not similar to fixed assets because they are fully liquidated within the;year.;A. True;B. False;Question 15 of 25;4.0;Points;Modos Company has deposited;$3,500 in checks received from customers. It has written $1,400 in checks to;its suppliers. The initial bank and book balance was $600. If $1,600 of its;customer?s checks have cleared but only $600 of its own, calculate its float.;A.$1,200;B.$1,100;C.$300;D.$700;Question 16 of 25;4.0;Points;A Just-In-Time (JIT) inventory;management program has all but which of the following requirements?;A.quality production;B.large safety stocks;C.close ties between suppliers;manufacturers, and customers;D.minimizing inventory levels;Question 17 of 25;4.0;Points;Because of changing economic;conditions, it is difficult for companies such as Dun & Bradstreet to devise;models predicting payment problems and probability of bankruptcy 12 months in;the future.;A. True;B. False;Question 18 of 25;4.0;Points;A trade discount is a percentage;reduction from the invoice price given for purchasing certain minimum;quantities.;A.;True;B.;False;Question 19 of 25;4.0;Points;The Truth in Lending law is;designed to protect;A.corporate;borrowers.;B.banks.;C.;consumers.;D.investors;in municipal bonds.;Question 20 of 25;4.0;Points;A "normal" term;structure of interest rates would depict;A.short-term;rates higher than long-term rates.;B.long-term;rates higher than short-term rates.;C.no;general relationship between short- and long-term rates.;D.Intermediate;rates (1-5 years) lower than both short-term and long-term rates.;Question 21 of 25;4.0;Points;Bank loans to business firms;A.are;usually short-term in nature.;B.are;preferred by the banker to be self-liquidating.;C.may;require compensating balances.;D.all;of these.;Question 22 of 25;4.0;Points;Normally, permanent current;assets should be financed by;A.long-term;funds.;B.short-term;funds.;C.borrowed;funds.;D.internally;generated funds.;Question 23 of 25;4.0;Points;Which of the following is not a;valid quantitative measure for accounts receivable collection policies?;A.average;collection period;B.aging;of accounts receivables;C.ratio;of debt to equity;D.ratio;of bad debts to credit sales;uestion 24 of 25;4.0;Points;Working capital management is;relatively unimportant for the small business.;True;False;Question 25 of 25;4.0;Points;For most firms, the primary;motive for holding cash is the transaction motive.;A.;True;B.;False

 

Paper#51542 | Written in 18-Jul-2015

Price : $22
SiteLock