Question 1

Revenue is recorded on an income statement when

Accepted Answer

A) payment for a sale has been received in full. 
B) an order for goods is placed. 
C) an exchange of goods or services has occurred and the earnings process is completed. 
D) an order for goods or services is placed and an initial payment is received. 
E) goods are placed in inventory and ready for future delivery. 
A) payment for a sale has been received in full. 
B) an order for goods is placed. 
C) an exchange of goods or services has occurred and the earnings process is completed. 
D) an order for goods or services is placed and an initial payment is received. 
E) goods are placed in inventory and ready for future delivery. C

Question 2

Free cash flow is

Accepted Answer

A) equal to net income. 
B) equal to net income plus taxes. 
C) a term used to describe an increase in net working capital. 
D) cash that is available to distribute to creditors and equity holders. 
E) another term for operating cash flow. 
A) equal to net income. 
B) equal to net income plus taxes. 
C) a term used to describe an increase in net working capital. 
D) cash that is available to distribute to creditors and equity holders. 
E) another term for operating cash flow. D

Question 3

Which one of these is handled differently in calculating cash flows for accounting versus financial purposes?

Accepted Answer

A) Change in net working capital 
B) Depreciation expense 
C) Interest expense 
D) Deferred taxes 
E) Dividends paid 
A) Change in net working capital 
B) Depreciation expense 
C) Interest expense 
D) Deferred taxes 
E) Dividends paid C

Question 4

You are given the following balance sheets.   What is the change in the net working capital from 2016 to 2017?

Accepted Answer

A) $45 
B) -$35 
C) $50 
D) -$50 
E) $35 
A) $45 
B) -$35 
C) $50 
D) -$50 
E) $35

Question 5

A(n)________ asset is one that can be quickly converted into cash without significant loss in value.

Accepted Answer

A) tangible 
B) fixed 
C) intangible 
D) liquid 
E) long-term 
A) tangible 
B) fixed 
C) intangible 
D) liquid 
E) long-term

Question 6

When making financial decisions related to assets,you should

Accepted Answer

A) place primary emphasis on historical costs. 
B) place more emphasis on book values than on market values. 
C) rely primarily on the value of assets as shown on the balance sheet. 
D) always consider market values. 
E) only consider market values if they are less than book values. 
A) place primary emphasis on historical costs. 
B) place more emphasis on book values than on market values. 
C) rely primarily on the value of assets as shown on the balance sheet. 
D) always consider market values. 
E) only consider market values if they are less than book values.

Question 7

You have compiled the following information on Winslow,Inc.:   What is the cash flow of the firm,or CF(A),for 2017?

Accepted Answer

A) -$1,273 
B) -$3,581 
C) $1,273 
D) $2,160 
E) $3,414 
A) -$1,273 
B) -$3,581 
C) $1,273 
D) $2,160 
E) $3,414

Question 8

The tax rates are as shown.Lasseter's currently has taxable income of $163,400.What is the firm's average tax rate?

Accepted Answer

A) 34.00% 
B) 36.03% 
C) 28.75% 
D) 39.00% 
E) 30.32% 
A) 34.00% 
B) 36.03% 
C) 28.75% 
D) 39.00% 
E) 30.32%

Question 9

Assume sales are $2,220;cost of goods sold is $1,055,general expenses are $630,depreciation expense is $210,and the tax rate is 35 percent.What is the net income amount if the firm paid $40 in interest expense?

Accepted Answer

A) $171.25 
B) $99.75 
C) $185.25 
D) $120.25 
E) $270.75 
A) $171.25 
B) $99.75 
C) $185.25 
D) $120.25 
E) $270.75

Question 10

A firm has $480 in inventory,$1,860 in fixed assets,$520 in accounts receivables,$190 in net working capital,and $120 in cash.What is the amount of the current liabilities?

Accepted Answer

A) $550 
B) $770 
C) $820 
D) $760 
E) $930 
A) $550 
B) $770 
C) $820 
D) $760 
E) $930

Question 11

Expenses are recorded on an income statement based on

Accepted Answer

A) their payment dates. 
B) the date the expenses are expected. 
C) the matching principle. 
D) their invoice dates. 
E) the average time principle. 
A) their payment dates. 
B) the date the expenses are expected. 
C) the matching principle. 
D) their invoice dates. 
E) the average time principle.

Question 12

The financial information on Lazy Day,Inc.is as follows:   What is the cash flow to stockholders,CF(S),for 2017?

Accepted Answer

A) $3,058 
B) $2,063 
C) $2,258 
D) $2,428 
E) $3,698 
A) $3,058 
B) $2,063 
C) $2,258 
D) $2,428 
E) $3,698

Question 13

Al's has a positive net income and a marginal tax rate of 34 percent.Given this,an increase in which one of the following will cause the operating cash flow to increase?

Accepted Answer

A) Fixed assets 
B) Taxes 
C) Net working capital 
D) Cost of goods sold 
E) Depreciation 
A) Fixed assets 
B) Taxes 
C) Net working capital 
D) Cost of goods sold 
E) Depreciation

Question 14

The cash flow from operating activities decreases when

Accepted Answer

A) fixed assets are sold. 
B) interest expense increases. 
C) dividends increase. 
D) depreciation increases. 
E) accounts receivables decrease. 
A) fixed assets are sold. 
B) interest expense increases. 
C) dividends increase. 
D) depreciation increases. 
E) accounts receivables decrease.

Question 15

A change in which one of these accounts will appear as an investing activity in an accounting statement of cash flows?

Accepted Answer

A) Accounts payable 
B) Inventory 
C) Interest expense 
D) Fixed assets 
E) Sales 
A) Accounts payable 
B) Inventory 
C) Interest expense 
D) Fixed assets 
E) Sales

Question 16

A current asset is best defined as

Accepted Answer

A) the market value of all assets currently owned by the firm. 
B) an asset the firm expects to purchase within the next year. 
C) the amount of cash on hand the firm currently shows on its balance sheet. 
D) cash and other assets owned by the firm that should convert to cash within the next year. 
E) the value of fixed assets the firm expects to sell within the next year. 
A) the market value of all assets currently owned by the firm. 
B) an asset the firm expects to purchase within the next year. 
C) the amount of cash on hand the firm currently shows on its balance sheet. 
D) cash and other assets owned by the firm that should convert to cash within the next year. 
E) the value of fixed assets the firm expects to sell within the next year.

Question 17

________ refers to the difference between a firm's current assets and its current liabilities.

Accepted Answer

A) Operating cash flow 
B) Capital spending 
C) Net working capital 
D) Cash flow from assets 
E) Cash flow to creditors 
A) Operating cash flow 
B) Capital spending 
C) Net working capital 
D) Cash flow from assets 
E) Cash flow to creditors

Question 18

Murphy's Outlet has the following balance sheets:   What is the change in net working capital?

Accepted Answer

A) -$65 
B) $91 
C) $65 
D) -$91 
E) $57 
A) -$65 
B) $91 
C) $65 
D) -$91 
E) $57

Question 19

You have compiled the following information on Winslow,Inc.:   What is the cash flow to creditors for 2017?

Accepted Answer

A) $3,650 
B) -$4,040 
C) $3,350 
D) -$4,270 
E) -$3,810 
A) $3,650 
B) -$4,040 
C) $3,350 
D) -$4,270 
E) -$3,810

Question 20

Whistler's sales for this past year were $21,381.The interest expense was $248,costs of goods sold were $9,784,selling and general expenses were $1,208,depreciation was $811,and the addition to retained earnings was $325.The firm sold $500 of new stock shares and repurchased $125 of outstanding shares. What was the cash flow to stockholders if the tax rate was 34 percent?

Accepted Answer

A) $725.50 
B) $670.25 
C) $202.72 
D) $208.28 
E) $235.55 
A) $725.50 
B) $670.25 
C) $202.72 
D) $208.28 
E) $235.55

Revenue is recorded on an income statement when

Free cash flow is

Which one of these is handled differently in calculating cash flows for accounting versus financial purposes?

You are given the following balance sheets. What is the change in the net working capital from 2016 to 2017?

A(n)________ asset is one that can be quickly converted into cash without significant loss in value.

When making financial decisions related to assets,you should

You have compiled the following information on Winslow,Inc.: What is the cash flow of the firm,or CF(A),for 2017?

The tax rates are as shown.Lasseter's currently has taxable income of $163,400.What is the firm's average tax rate?

Assume sales are $2,220;cost of goods sold is $1,055,general expenses are $630,depreciation expense is $210,and the tax rate is 35 percent.What is the net income amount if the firm paid $40 in interest expense?

A firm has $480 in inventory,$1,860 in fixed assets,$520 in accounts receivables,$190 in net working capital,and $120 in cash.What is the amount of the current liabilities?

Expenses are recorded on an income statement based on

The financial information on Lazy Day,Inc.is as follows: What is the cash flow to stockholders,CF(S),for 2017?

Al's has a positive net income and a marginal tax rate of 34 percent.Given this,an increase in which one of the following will cause the operating cash flow to increase?

The cash flow from operating activities decreases when

A change in which one of these accounts will appear as an investing activity in an accounting statement of cash flows?

A current asset is best defined as

________ refers to the difference between a firm's current assets and its current liabilities.

Murphy's Outlet has the following balance sheets: What is the change in net working capital?

You have compiled the following information on Winslow,Inc.: What is the cash flow to creditors for 2017?

Introduction to Corporate Finance

Financial Statements Analysis Amcq Financial Models

Discounted Cash Flow Valuation

Interest Rates AMCQ Bomcq Valuation

Stock Valuation

Net Present Value AMCQ Other Investment Rules

Making Capital Investment Decisions

Risk Analysis, Real Options, AMCQ Capital Budgeting

Risk Amcq Return: Lessons From Market History

Return Amcq Risk: the Capital Asset Pricing Model Capm

Risk, cost of Capital, AMCQ Valuation

Efficient Capital Markets Amcq Behavioral Challenges

Capital Structure: Basic Concepts

Capital Structure: Limits to the Use of Debt

Dividemcqs AMCQ Other Payouts

Options Amcq Corporate Finance

Short-Term Finance Amcq Planning

Raising Capital

International Corporate Finance

Mergers Amcq Acquisitions Web Only

Filters

Exam 2: Financial Statements AMCQ Cash Flow

Revenue is recorded on an income statement when

Free cash flow is

Which one of these is handled differently in calculating cash flows for accounting versus financial purposes?

You are given the following balance sheets. What is the change in the net working capital from 2016 to 2017?

A(n)________ asset is one that can be quickly converted into cash without significant loss in value.

When making financial decisions related to assets,you should

You have compiled the following information on Winslow,Inc.: What is the cash flow of the firm,or CF(A),for 2017?

The tax rates are as shown.Lasseter's currently has taxable income of $163,400.What is the firm's average tax rate?

Assume sales are $2,220;cost of goods sold is $1,055,general expenses are $630,depreciation expense is $210,and the tax rate is 35 percent.What is the net income amount if the firm paid $40 in interest expense?

A firm has $480 in inventory,$1,860 in fixed assets,$520 in accounts receivables,$190 in net working capital,and $120 in cash.What is the amount of the current liabilities?

Expenses are recorded on an income statement based on

The financial information on Lazy Day,Inc.is as follows: What is the cash flow to stockholders,CF(S),for 2017?

Al's has a positive net income and a marginal tax rate of 34 percent.Given this,an increase in which one of the following will cause the operating cash flow to increase?

The cash flow from operating activities decreases when

A change in which one of these accounts will appear as an investing activity in an accounting statement of cash flows?

A current asset is best defined as

________ refers to the difference between a firm's current assets and its current liabilities.

Murphy's Outlet has the following balance sheets: What is the change in net working capital?

You have compiled the following information on Winslow,Inc.: What is the cash flow to creditors for 2017?

Introduction to Corporate Finance

Financial Statements Analysis Amcq Financial Models

Discounted Cash Flow Valuation

Interest Rates AMCQ Bomcq Valuation

Stock Valuation

Net Present Value AMCQ Other Investment Rules

Making Capital Investment Decisions

Risk Analysis, Real Options, AMCQ Capital Budgeting

Risk Amcq Return: Lessons From Market History

Return Amcq Risk: the Capital Asset Pricing Model Capm

Risk, cost of Capital, AMCQ Valuation

Efficient Capital Markets Amcq Behavioral Challenges

Capital Structure: Basic Concepts

Capital Structure: Limits to the Use of Debt

Dividemcqs AMCQ Other Payouts

Options Amcq Corporate Finance

Short-Term Finance Amcq Planning

Raising Capital

International Corporate Finance

Mergers Amcq Acquisitions Web Only

Filters