Question 1

What is the investment cash flow, given the following information?

Accepted Answer

A)  -$20 
B)  -$10 
C)  $10 
D)  $20 
E)  $100 
A)  -$20 
B)  -$10 
C)  $10 
D)  $20 
E)  $100

Question 2

Which one of the following ratios tells you the amount of assets a firm needs to generate $1 in sales?

Accepted Answer

A)  capital intensity ratio 
B)  return on assets 
C)  asset turnover rate 
D)  profit margin 
E)  earnings ratio 
A)  capital intensity ratio 
B)  return on assets 
C)  asset turnover rate 
D)  profit margin 
E)  earnings ratio

Question 3

GH Enterprises has annual sales of $5.2 million, depreciation of $350,000, operating expenses of $390,000, and cost of goods sold of $3.1 million. What is the gross profit?

Accepted Answer

A)  $460,000 
B)  $850,000 
C)  $2,100,000 
D)  $2,650,000 
E)  $3,710,000 
A)  $460,000 
B)  $850,000 
C)  $2,100,000 
D)  $2,650,000 
E)  $3,710,000

Question 4

A decrease in which one of the following will increase the return on assets?

Accepted Answer

A)  long-term debt 
B)  sales 
C)  inventory 
D)  retained earnings 
E)  dividends paid 
A)  long-term debt 
B)  sales 
C)  inventory 
D)  retained earnings 
E)  dividends paid

Question 5

Which one of the following statements related to book value per share (BVPS) is correct?

Accepted Answer

A)  BVPS is equal to total assets divided by the number of shares outstanding. 
B)  An increase in the market value of a firm's fixed assets will increase the firm's BVPS. 
C)  The payment of a dividend increases BVPS. 
D)  BVPS is equal to the market price of a share of stock. 
E)  The issuance of new shares at market value may increase the BVPS. 
A)  BVPS is equal to total assets divided by the number of shares outstanding. 
B)  An increase in the market value of a firm's fixed assets will increase the firm's BVPS. 
C)  The payment of a dividend increases BVPS. 
D)  BVPS is equal to the market price of a share of stock. 
E)  The issuance of new shares at market value may increase the BVPS.

Question 6

How frequently do corporations file 10K reports with the SEC?

Accepted Answer

A)  monthly 
B)  quarterly 
C)  semi-annually 
D)  annually 
E)  only when the firm engages in a merger or an acquisition 
A)  monthly 
B)  quarterly 
C)  semi-annually 
D)  annually 
E)  only when the firm engages in a merger or an acquisition

Question 7

Which one of the following is most apt to vary directly with sales?

Accepted Answer

A)  current assets 
B)  long-term debt 
C)  shareholders' equity 
D)  paid-in capital 
E)  retained earnings 
A)  current assets 
B)  long-term debt 
C)  shareholders' equity 
D)  paid-in capital 
E)  retained earnings

Question 8

Which one of the following is an intangible fixed asset?

Accepted Answer

A)  accounts receivable 
B)  patent 
C)  inventory 
D)  equipment 
E)  building 
A)  accounts receivable 
B)  patent 
C)  inventory 
D)  equipment 
E)  building

Question 9

Which one of the following is NOT included in operating income?

Accepted Answer

A)  sales 
B)  depreciation 
C)  interest expense 
D)  cost of goods sold 
E)  other operating expenses 
A)  sales 
B)  depreciation 
C)  interest expense 
D)  cost of goods sold 
E)  other operating expenses

Question 10

A company has the following account balances. How much cash does the firm have assuming there are no other accounts?

Accepted Answer

A)  $27,300 
B)  $27,700 
C)  $30,700 
D)  $47,300 
E)  $50,300 
A)  $27,300 
B)  $27,700 
C)  $30,700 
D)  $47,300 
E)  $50,300

Question 11

Which one of the following is an accounting statement that provides information on a firm's revenues and expenses?

Accepted Answer

A)  balance sheet 
B)  cash budget 
C)  pro-forma balance sheet 
D)  income statement 
E)  cash flow statement 
A)  balance sheet 
B)  cash budget 
C)  pro-forma balance sheet 
D)  income statement 
E)  cash flow statement

Question 12

A company has net income of $59,850, a price-earnings ratio of 22.6, and 25,500 shares of stock outstanding. If the price-cash flow ratio is 20.4, what is the cash flow per share?

Accepted Answer

A)  $2.05 
B)  $2.34 
C)  $2.60 
D)  $2.69 
E)  $3.14 
A)  $2.05 
B)  $2.34 
C)  $2.60 
D)  $2.69 
E)  $3.14

Question 13

A firm has total equity of $61,600 and total liabilities of $18,900. Current assets are $44,700 and current liabilities are $15,200. What is the value of the net fixed assets?

Accepted Answer

A)  $8,300 
B)  $10,600 
C)  $29,500 
D)  $35,800 
E)  $42,700 
A)  $8,300 
B)  $10,600 
C)  $29,500 
D)  $35,800 
E)  $42,700

Question 14

The costs of materials used in the production of a product are recorded in which one of the following accounts?

Accepted Answer

A)  net sales 
B)  fixed costs 
C)  operating income 
D)  depreciation 
E)  cost of goods sold 
A)  net sales 
B)  fixed costs 
C)  operating income 
D)  depreciation 
E)  cost of goods sold

Question 15

Whole Wheat Farms, Inc. has a net income of $20,000 and a dividend payout ratio of 30 percent. The firm issued $12,000 worth of common stock during the period. The firm has no long-term debt. What is the financing cash flow for the period?

Accepted Answer

A)  $2,500 
B)  $3,000 
C)  $6,000 
D)  $9,000 
E)  $25,000 
A)  $2,500 
B)  $3,000 
C)  $6,000 
D)  $9,000 
E)  $25,000

Question 16

Which one of the following is a tangible fixed asset?

Accepted Answer

A)  cash 
B)  equipment 
C)  accounts receivable 
D)  right 
E)  inventory 
A)  cash 
B)  equipment 
C)  accounts receivable 
D)  right 
E)  inventory

Question 17

Which one of the following is a financial planning method wherein some account values vary in relation to expected sales?

Accepted Answer

A)  common size approach 
B)  linear method 
C)  percentage of net income method 
D)  adjusted sales method 
E)  percentage of sales approach 
A)  common size approach 
B)  linear method 
C)  percentage of net income method 
D)  adjusted sales method 
E)  percentage of sales approach

Question 18

Children's Books, Inc. has net income of $48,000 and a plowback ratio of 85 percent. There are 25,000 shares of stock outstanding at a market price of $18.64 a share. What is the price-earnings ratio?

Accepted Answer

A)  6.9 
B)  7.1 
C)  9.7 
D)  11.1 
E)  11.6 
A)  6.9 
B)  7.1 
C)  9.7 
D)  11.1 
E)  11.6

Question 19

A decrease in which one of the following will increase the gross margin?

Accepted Answer

A)  taxes 
B)  sales 
C)  depreciation 
D)  variable costs 
E)  fixed costs 
A)  taxes 
B)  sales 
C)  depreciation 
D)  variable costs 
E)  fixed costs

Question 20

Which of the following are current assets?
I. inventory
II. goodwill
III. fixed assets
IV. cash

Accepted Answer

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

What is the investment cash flow, given the following information?

Which one of the following ratios tells you the amount of assets a firm needs to generate $1 in sales?

GH Enterprises has annual sales of $5.2 million, depreciation of $350,000, operating expenses of $390,000, and cost of goods sold of $3.1 million. What is the gross profit?

A decrease in which one of the following will increase the return on assets?

Which one of the following statements related to book value per share (BVPS) is correct?

How frequently do corporations file 10K reports with the SEC?

Which one of the following is most apt to vary directly with sales?

Which one of the following is an intangible fixed asset?

Which one of the following is NOT included in operating income?

A company has the following account balances. How much cash does the firm have assuming there are no other accounts?

Which one of the following is an accounting statement that provides information on a firm's revenues and expenses?

A company has net income of $59,850, a price-earnings ratio of 22.6, and 25,500 shares of stock outstanding. If the price-cash flow ratio is 20.4, what is the cash flow per share?

A firm has total equity of $61,600 and total liabilities of $18,900. Current assets are $44,700 and current liabilities are $15,200. What is the value of the net fixed assets?

The costs of materials used in the production of a product are recorded in which one of the following accounts?

Whole Wheat Farms, Inc. has a net income of $20,000 and a dividend payout ratio of 30 percent. The firm issued $12,000 worth of common stock during the period. The firm has no long-term debt. What is the financing cash flow for the period?

Which one of the following is a tangible fixed asset?

Which one of the following is a financial planning method wherein some account values vary in relation to expected sales?

Children's Books, Inc. has net income of $48,000 and a plowback ratio of 85 percent. There are 25,000 shares of stock outstanding at a market price of $18.64 a share. What is the price-earnings ratio?

A decrease in which one of the following will increase the gross margin?

Which of the following are current assets? I. inventory II. goodwill III. fixed assets IV. cash

A Brief History of Risk and Return

The Investment Process

Overview of Security Types

Mutual Funds

The Stock Market

Common Stock Valuation

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Diversification and Risky Asset Allocation

Return, Risk, and the Security Market Line

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Corporate Bonds

Government Bonds

Mortgage-Backed Securities

Filters

Exam 17: Projecting Cash Flow and Earnings

What is the investment cash flow, given the following information?

Which one of the following ratios tells you the amount of assets a firm needs to generate $1 in sales?

GH Enterprises has annual sales of $5.2 million, depreciation of $350,000, operating expenses of $390,000, and cost of goods sold of $3.1 million. What is the gross profit?

A decrease in which one of the following will increase the return on assets?

Which one of the following statements related to book value per share (BVPS) is correct?

How frequently do corporations file 10K reports with the SEC?

Which one of the following is most apt to vary directly with sales?

Which one of the following is an intangible fixed asset?

Which one of the following is NOT included in operating income?

A company has the following account balances. How much cash does the firm have assuming there are no other accounts?

Which one of the following is an accounting statement that provides information on a firm's revenues and expenses?

A company has net income of $59,850, a price-earnings ratio of 22.6, and 25,500 shares of stock outstanding. If the price-cash flow ratio is 20.4, what is the cash flow per share?

A firm has total equity of $61,600 and total liabilities of $18,900. Current assets are $44,700 and current liabilities are $15,200. What is the value of the net fixed assets?

The costs of materials used in the production of a product are recorded in which one of the following accounts?

Whole Wheat Farms, Inc. has a net income of $20,000 and a dividend payout ratio of 30 percent. The firm issued $12,000 worth of common stock during the period. The firm has no long-term debt. What is the financing cash flow for the period?

Which one of the following is a tangible fixed asset?

Which one of the following is a financial planning method wherein some account values vary in relation to expected sales?

Children's Books, Inc. has net income of $48,000 and a plowback ratio of 85 percent. There are 25,000 shares of stock outstanding at a market price of $18.64 a share. What is the price-earnings ratio?

A decrease in which one of the following will increase the gross margin?

Which of the following are current assets? I. inventory II. goodwill III. fixed assets IV. cash

A Brief History of Risk and Return

The Investment Process

Overview of Security Types

Mutual Funds

The Stock Market

Common Stock Valuation

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Diversification and Risky Asset Allocation

Return, Risk, and the Security Market Line

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Corporate Bonds

Government Bonds

Mortgage-Backed Securities

Filters