Question 1

Which of the following statements is CORRECT?

Accepted Answer

A)  The four most important financial statements provided in the annual report are the balance sheet, income statement, cash budget, and the statement of stockholders' equity. 
B)  The balance sheet gives us a picture of the firm's financial position at a point in time. 
C)  The income statement gives us a picture of the firm's financial position at a point in time. 
D)  The statement of cash flows tells us how much cash the firm has in the form of currency and demand deposits. 
E)  The statement of cash needs tells us how much cash the firm will require during some future period, generally a month or a year. 
A)  The four most important financial statements provided in the annual report are the balance sheet, income statement, cash budget, and the statement of stockholders' equity. 
B)  The balance sheet gives us a picture of the firm's financial position at a point in time. 
C)  The income statement gives us a picture of the firm's financial position at a point in time. 
D)  The statement of cash flows tells us how much cash the firm has in the form of currency and demand deposits. 
E)  The statement of cash needs tells us how much cash the firm will require during some future period, generally a month or a year. B

Question 2

Other things held constant, which of the following actions would increase the amount of cash on a company's balance sheet?

Accepted Answer

A)  The company repurchases common stock. 
B)  The company pays a dividend. 
C)  The company issues new common stock. 
D)  The company gives customers more time to pay their bills. 
A)  The company repurchases common stock. 
B)  The company pays a dividend. 
C)  The company issues new common stock. 
D)  The company gives customers more time to pay their bills. C

Question 3

Which of the following statements is CORRECT?

Accepted Answer

A)  The balance sheet for a given year, say 2008, is designed to give us an idea of what happened to the firm during that year. 
B)  The balance sheet for a given year, say 2008, tells us how much money the company earned during that year. 
C)  The difference between the total assets reported on the balance sheet and the debts reported on this statement tells us the current market value of the stockholders' equity, assuming the statements are prepared in accordance with generally accepted accounting principles (GAAP). 
D)  For most companies, the market value of the stock equals the book value of the stock as reported on the balance sheet. 
E)  A typical industrial company's balance sheet lists the firm's assets that will be converted to cash first, and then goes on down to list the firm's longest lived assets last. 
A)  The balance sheet for a given year, say 2008, is designed to give us an idea of what happened to the firm during that year. 
B)  The balance sheet for a given year, say 2008, tells us how much money the company earned during that year. 
C)  The difference between the total assets reported on the balance sheet and the debts reported on this statement tells us the current market value of the stockholders' equity, assuming the statements are prepared in accordance with generally accepted accounting principles (GAAP). 
D)  For most companies, the market value of the stock equals the book value of the stock as reported on the balance sheet. 
E)  A typical industrial company's balance sheet lists the firm's assets that will be converted to cash first, and then goes on down to list the firm's longest lived assets last. E

Which of the following statements is CORRECT?

Other things held constant, which of the following actions would increase the amount of cash on a company's balance sheet?

Which of the following statements is CORRECT?

An Overview of Financial Management and the Financial Environment

Analysis of Financial Statements

Time Value of Money

Bonds, Bond Valuation, and Interest Rates

Risks and Rates of Return

Stocks and Their Valuation

Financial Options and Applications in Corporate Finance

The Cost of Capital

The Basics of Capital Budgeting

Cash Flow Estimation and Risk Analysis

Financial Planning and Forecasting Financial Statements

Corporate Valuation, Value-Based Management, and Corporate Governance

Distributions to Shareholders: Dividends and Repurchases

Capital Structure Decisions

Working Capital Management

Multinational Financial Management

Lease Financing

Hybrid Financing: Preferred Stock, Warrants, and Convertibles

Initial Public Offerings, Investment Banking, and Financial Restructuring

Mergers, Lbos, Divestitures, and Holding Companies

Bankruptcy, Reorganization, and Liquidation

Derivatives and Risk Management

Portfolio Theory, Asset Pricing Models, and Behavioral Finance

Real Options

Analysis of Capital Structure Theory

Providing and Obtaining Credit

Advanced Issues in Cash Management and Inventory Control

Pension Plan Management

Financial Management in Not-For-Profit Businesses

Filters

Exam 2: Financial Statements, Cash Flow, and Taxes

Which of the following statements is CORRECT?

Other things held constant, which of the following actions would increase the amount of cash on a company's balance sheet?

Which of the following statements is CORRECT?

An Overview of Financial Management and the Financial Environment

Analysis of Financial Statements

Time Value of Money

Bonds, Bond Valuation, and Interest Rates

Risks and Rates of Return

Stocks and Their Valuation

Financial Options and Applications in Corporate Finance

The Cost of Capital

The Basics of Capital Budgeting

Cash Flow Estimation and Risk Analysis

Financial Planning and Forecasting Financial Statements

Corporate Valuation, Value-Based Management, and Corporate Governance

Distributions to Shareholders: Dividends and Repurchases

Capital Structure Decisions

Working Capital Management

Multinational Financial Management

Lease Financing

Hybrid Financing: Preferred Stock, Warrants, and Convertibles

Initial Public Offerings, Investment Banking, and Financial Restructuring

Mergers, Lbos, Divestitures, and Holding Companies

Bankruptcy, Reorganization, and Liquidation

Derivatives and Risk Management

Portfolio Theory, Asset Pricing Models, and Behavioral Finance

Real Options

Analysis of Capital Structure Theory

Providing and Obtaining Credit

Advanced Issues in Cash Management and Inventory Control

Pension Plan Management

Financial Management in Not-For-Profit Businesses

Filters