TEST 1 QUIZZES- FIN MGT | FIN 3123 - Financial Management, Quizzes of Finance

Download TEST 1 QUIZZES- FIN MGT | FIN 3123 - Financial Management and more Quizzes Finance in PDF only on Docsity! TERM 1 capital budgeting DEFINITION 1 which one of the following terms is defined as the management of a firm's long term investments TERM 2 capital structure DEFINITION 2 which one of the following terms is defined as the mixture of a firm's debt and equity financing TERM 3 working capital DEFINITION 3 which one of the following is defined as a firm's short term assets and its short term liabilities TERM 4 sole proprietorship DEFINITION 4 a business owned by a solitary individual who has unlimited liability for its debt is called a TERM 5 general partnership DEFINITION 5 business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a TERM 6 limited partner DEFINITION 6 business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a TERM 7 corporation DEFINITION 7 a business created as a distinct legal entity and treated as a legal "person" is called a TERM 8 agency problem DEFINITION 8 which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers TERM 9 stakeholder DEFINITION 9 any person or entity other than a stockholder or creditor who potentially has a claim on the cash flows of a firm TERM 10 addressed by financial managers DEFINITION 10 should customers be given 30 or 45 days to pay for their credit purchasesshould the firm borrow more moneyshould the firm acquire new equipment TERM 21 balance sheet DEFINITION 21 which one of the following is the financial statement that shows the accounting value of a firm's equity as of a particular date TERM 22 net working capital DEFINITION 22 current assets minus current liabilities TERM 23 generally accepted accounting principles DEFINITION 23 common set of standards and procedures by which audited financial statements are prepared is known as TERM 24 income statement DEFINITION 24 which one of the following is the financial statement that summarizes a firm's revenue and expenses over a period of time TERM 25 noncash items DEFINITION 25 expenses which do not directly affect cash flows TERM 26 trademark DEFINITION 26 which one of the following is classified as an intangible fixed asset TERM 27 current assets DEFINITION 27 inventorycash TERM 28 good reputation of the company DEFINITION 28 which one of the following is included in a firm's market value but yet is excluded from the firm's accounting value TERM 29 current liabilities DEFINITION 29 note payable to a supplier in eight monthsaccount payable to a supplier that is due next week TERM 30 selling inventory at a profit DEFINITION 30 which one of the following will increase the value of a firm's net working capital TERM 31 accounts receivable DEFINITION 31 which one of the following accounts is the most liquid TERM 32 the higher the degree of financial leverage employed by a firm DEFINITION 32 ....the higher the probability that the firm will encounter financial distress TERM 33 book value of a firm DEFINITION 33 based on historical cost TERM 34 office salaries DEFINITION 34 most apt to be a fixed cost TERM 35 depreciation DEFINITION 35 which one of the following costs is most apt to be a fixed cost TERM 46 0.5 DEFINITION 46 if a firm has a debt equity ratio of 1.0, then its total debt ratio must be which one of the following TERM 47 has an equity multiplier of 1.0 DEFINITION 47 if a firm produces a twelve percent return on assets and also a twelve percent return on equity, then the firm: TERM 48 today's cost to duplicate those assets DEFINITION 48 tobin's Q relates the market value of a firm's assets to which one of the following TERM 49 negative earnings DEFINITION 49 the price sales ratio is especially useful when analyzing firms that have which one of the following TERM 50 return on equity and price earnings DEFINITION 50 shareholders probably have the most interest in which one of the following sets of ratios TERM 51 Du Pont identity DEFINITION 51 equity multiplierprofit margintotal asset turnover TERM 52 sales and net income DEFINITION 52 an increase in which of the following will increase the return on equity, all else constant TERM 53 Du Pont identity helps managers answer what DEFINITION 53 how many sales dollars has the firm generated per each dollar of assetshow many dollars of assets has a firm acquired per each dollar in shareholder's equityhow much net profit is a firm generating per dollar of sales TERM 54 financial ratios to the firm's historical ratios DEFINITION 54 the most acceptable method of evaluating the financial statements of a firm is to compare the firm's current: