Download Quiz 2 Question with Answer Key - Financial Management | FIN 3123 and more Quizzes Finance in PDF only on Docsity! award:
1 out of
1.00 point
Which one of the following is the financial statement that shows the accounting value of a firm's equity as of a particular date?
income statement
creditor's statement
@© balance sheet
‘statement of cash flows
dividend statement
Refer to section 2.1
award:
1 out of
1.00 point
Net working capital is defined as:
total liabilities minus shareholders’ equity.
current liabilities minus shareholders' equity.
fixed assets minus long-term liabilities.
total assets minus total liabilities.
@©) current assets minus current liabilities.
Refer to section 2.1
award:
5 1 out of
1.00 point
Noncash items refer to:
accrued expenses.
inventory items purchased using credit.
the ownership of intangible assets such as patents.
@©) expenses which do not directly affect cash flows.
sales which are made using store credit.
Refer to section 2.2
award:
1 out of
1.00 point
Which one of the following is classified as an intangible fixed asset?
accounts receivable
production equipment
building
@©) trademark
inventory
Refer to section 2.1
award:
1 out of
1.00 point
Which of the following are current assets?
|. patent
Il. inventory
Ill. accounts payable
IV. cash
land Ill only
@© Il and IV only
|, Il, and IV only
|, Il and IV only
Il, Ill, and IV only
Refer to section 2.1
10.
award:
1 out of
1.00 point
Which one of the following will increase the value of a firm's net working capital?
using cash to pay a supplier
depreciating an asset
collecting an accounts receivable
purchasing inventory on credit
@© selling inventory at a profit
Refer to section 2.1
11.
award:
2 out of
2.00 points
Which one of the following accounts is the most liquid?
inventory
building
©@©) accounts receivable
equipment
land
Refer to section 2.1
12.
award:
2 out of
2.00 points
The higher the degree of financial leverage employed by a firm, the:
@©) higher the probability that the firm will encounter financial distress.
lower the amount of debt incurred.
less debt a firm has per dollar of total assets.
higher the number of outstanding shares of stock.
lower the balance in accounts payable.
Refer to section 2.1
