Question 1

When performing projected financial analysis, the balance sheet should be prepared before the income statement.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following reflects the common "maximizing shareholders' wealth" overarching corporate objective?

Accepted Answer

A)  EPS 
B)  EBIT 
C)  Operating income 
D)  Gross margin 
E)  EBITDA

Question 3

The year 2016 was the sixth straight year that a record dollar value of bonds was sold in the United States.

Accepted Answer

A) True 
 B)False

Question 4

________ is/are the number of shares a firm has approval to issue in total.

Accepted Answer

A)  Treasury stock 
B)  Shares outstanding 
C)  Preferred shares 
D)  Shares permitted 
E)  Shares authorized

Question 5

With the merger and acquisition boom this decade, S&P 500 firms experienced a ________ percent increase in goodwill.

Accepted Answer

A)  45 
B)  30 
C)  70 
D)  55 
E)  63

Question 6

It is generally not recommended for companies with less than $10 million in sales to go public.

Accepted Answer

A) True 
 B)False

Question 7

Smaller firms or firms with negative earnings will also likely have higher rates associated with their bonds, possibly resulting in issuing bonds (debt) to be a more expensive alternative than equity.

Accepted Answer

A) True 
 B)False

Question 8

All firms have treasury stock.

Accepted Answer

A) True 
 B)False

Exam 8: Implementing Strategies: Finance and Accounting Issues

When performing projected financial analysis, the balance sheet should be prepared before the income statement.

Which of the following reflects the common "maximizing shareholders' wealth" overarching corporate objective?

The year 2016 was the sixth straight year that a record dollar value of bonds was sold in the United States.

________ is/are the number of shares a firm has approval to issue in total.

With the merger and acquisition boom this decade, S&P 500 firms experienced a ________ percent increase in goodwill.

It is generally not recommended for companies with less than $10 million in sales to go public.

Smaller firms or firms with negative earnings will also likely have higher rates associated with their bonds, possibly resulting in issuing bonds (debt) to be a more expensive alternative than equity.

All firms have treasury stock.