Question 1

Free cash flow is:

Accepted Answer

A) without cost to the firm. 
B) net income plus taxes. 
C) an increase in net working capital. 
D) cash that the firm is free to distribute to creditors and shareholders. 
E) None of the above. 
A) without cost to the firm. 
B) net income plus taxes. 
C) an increase in net working capital. 
D) cash that the firm is free to distribute to creditors and shareholders. 
E) None of the above.

Question 2

Why is interest expense excluded from the operating cash flow calculation?

Accepted Answer

Operating cash flow is designed to repre

Question 3

Which of the following accounts are included in shareholders' equity?
I.Interest paid.
II.Retained earnings.
III.Capital surplus.
IV.Non-current liabilities.

Accepted Answer

A) I and II only. 
B) II and IV only. 
C) I and IV only. 
D) II and III only. 
E) I and III only. 
A) I and II only. 
B) II and IV only. 
C) I and IV only. 
D) II and III only. 
E) I and III only.

Question 4

Knickerdoodles NV.
$\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\underline { 2009 }\quad\quad\quad\quad\quad\underline { 2010 }$
 
-What is the cash flow to creditors for 2010?

Accepted Answer

A) -€170 
B) -€35 
C) €135 
D) €170 
E) €205 
A) -€170 
B) -€35 
C) €135 
D) €170 
E) €205

Question 5

Book value:

Accepted Answer

A) is equivalent to market value for firms with non-current assets. 
B) is based on historical cost. 
C) generally tends to exceed market value when non-current assets are included. 
D) is more of a financial than an accounting valuation. 
E) is adjusted to market value whenever the market value exceeds the stated book value. 
A) is equivalent to market value for firms with non-current assets. 
B) is based on historical cost. 
C) generally tends to exceed market value when non-current assets are included. 
D) is more of a financial than an accounting valuation. 
E) is adjusted to market value whenever the market value exceeds the stated book value.

Question 6

At the beginning of the year,non-current liabilities of a firm is €280 and total debt is €340.At the end of the year,non-current liabilities is €260 and total debt is €350.The interest paid is €30.What is the amount of the cash flow to creditors?

Accepted Answer

A) -€50 
B) -€20 
C) €20 
D) €30 
E) €50 
A) -€50 
B) -€20 
C) €20 
D) €30 
E) €50

Question 7

According to International Accounting Standards,

Accepted Answer

A) income is recorded based on the matching principle. 
B) income is recorded based on the realization principle. 
C) costs are recorded based on the liquidity principle. 
D) net income is recorded based on the realization principle. 
E) depreciation is recorded as it affects the cash flows of a firm. 
A) income is recorded based on the matching principle. 
B) income is recorded based on the realization principle. 
C) costs are recorded based on the liquidity principle. 
D) net income is recorded based on the realization principle. 
E) depreciation is recorded as it affects the cash flows of a firm.

Question 8

The non-current liabilities of a firm are liabilities:

Accepted Answer

A) that come due within the next 12 months. 
B) that do not come due for at least 12 months. 
C) owed to the firm's suppliers. 
D) owed to the firm's shareholders. 
E) the firm expects to incur within the next 12 months. 
A) that come due within the next 12 months. 
B) that do not come due for at least 12 months. 
C) owed to the firm's suppliers. 
D) owed to the firm's shareholders. 
E) the firm expects to incur within the next 12 months.

Question 9

Which of the following are included in current liabilities?
I.Note payable to a supplier in eighteen months.
II.Debt payable to a mortgage company in nine months.
III.Trade payables to suppliers.
IV.Loan payable to the bank in fourteen months.

Accepted Answer

A) I and III only. 
B) II and III only. 
C) III and IV only. 
D) II,III,and IV only. 
E) I,II,and III only. 
A) I and III only. 
B) II and III only. 
C) III and IV only. 
D) II,III,and IV only. 
E) I,II,and III only.

Free cash flow is:

Why is interest expense excluded from the operating cash flow calculation?

Which of the following accounts are included in shareholders' equity? I.Interest paid. II.Retained earnings. III.Capital surplus. IV.Non-current liabilities.

Book value:

At the beginning of the year,non-current liabilities of a firm is €280 and total debt is €340.At the end of the year,non-current liabilities is €260 and total debt is €350.The interest paid is €30.What is the amount of the cash flow to creditors?

According to International Accounting Standards,

The non-current liabilities of a firm are liabilities:

Which of the following are included in current liabilities? I.Note payable to a supplier in eighteen months. II.Debt payable to a mortgage company in nine months. III.Trade payables to suppliers. IV.Loan payable to the bank in fourteen months.

Introduction to Corporate Finance

Corporate Governance

Discounted Cash Flow Valuation

How to Value Bonds and Shares

Net Present Value and Other Investment Rules

Making Capital Investment Decisions

Risk Analysis, Real Options, and Capital Budgeting

Risk and Return: Lessons From Market History

Return and Risk: The Capital Asset Pricing Model Capm

Factor Models and the Arbitrage Pricing Theory

Risk, cost of Capital, and Capital Budgeting

Corporate Financing Decisions and Efficient Capital Markets

Long-Term Financing: An Introduction

Capital Structure: Basic Concepts

Capital Structure: Limits to the Use of Debt

Valuation and Capital Budgeting for the Levered Firm

Dividend and Other Payouts

Equity Financing

Debt Financing

Leasing and Off-Balance-Sheet Financing

Options and Corporate Finance

Options and Corporate Finance: Extensions and Applications

Warrants and Convertibles

Financial Risk Management With Derivatives

Short-Term Finance and Planning

Cash Management

Credit Management

Mergers and Acquisitions

Financial Distress

International Corporate Finance

Filters

Exam 3: Financial Statement Analysis and Long-Term Planning

Free cash flow is:

Why is interest expense excluded from the operating cash flow calculation?

Which of the following accounts are included in shareholders' equity? I.Interest paid. II.Retained earnings. III.Capital surplus. IV.Non-current liabilities.

Knickerdoodles NV. 2009‾2010‾\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\underline { 2009 }\quad\quad\quad\quad\quad\underline { 2010 }2009​2010​ -What is the cash flow to creditors for 2010?

Book value:

At the beginning of the year,non-current liabilities of a firm is €280 and total debt is €340.At the end of the year,non-current liabilities is €260 and total debt is €350.The interest paid is €30.What is the amount of the cash flow to creditors?

According to International Accounting Standards,

The non-current liabilities of a firm are liabilities:

Which of the following are included in current liabilities? I.Note payable to a supplier in eighteen months. II.Debt payable to a mortgage company in nine months. III.Trade payables to suppliers. IV.Loan payable to the bank in fourteen months.

Introduction to Corporate Finance

Corporate Governance

Discounted Cash Flow Valuation

How to Value Bonds and Shares

Net Present Value and Other Investment Rules

Making Capital Investment Decisions

Risk Analysis, Real Options, and Capital Budgeting

Risk and Return: Lessons From Market History

Return and Risk: The Capital Asset Pricing Model Capm

Factor Models and the Arbitrage Pricing Theory

Risk, cost of Capital, and Capital Budgeting

Corporate Financing Decisions and Efficient Capital Markets

Long-Term Financing: An Introduction

Capital Structure: Basic Concepts

Capital Structure: Limits to the Use of Debt

Valuation and Capital Budgeting for the Levered Firm

Dividend and Other Payouts

Equity Financing

Debt Financing

Leasing and Off-Balance-Sheet Financing

Options and Corporate Finance

Options and Corporate Finance: Extensions and Applications

Warrants and Convertibles

Financial Risk Management With Derivatives

Short-Term Finance and Planning

Cash Management

Credit Management

Mergers and Acquisitions

Financial Distress

International Corporate Finance

Filters