Question 1: The corporate officer generally responsible for tasks related to cash and credit management, financial planning, and capital expenditures is the:
- Corporate Treasurer
- Director
- Corporate Controller
- Chairman of the Board
Question 2. The process of planning and managing a firm's long-term investments is called:
- Working capital management
- Capital structure
- Agency cost analysis
- Capital budgeting
Question 3. The mixture of debt and equity used by the firm to finance its operations is:
- working captial management
- capital budgeting
- capital structure
- financial depreciation
Question 4. A business owned by a singe individual is called a(n):
- corporation
- sole proprietorship
- partnership
- open structure
Question 5. A business created as a distinct legal entity composed of one or more individuals or entities is called a(n):
- Corporation
- Partnership
- Closed receivership
- Open structure
Question 6. The financial statement showing a firm's accounting value on a partiular date is the:
- Income statement
- Balance sheet
- Statement of cash flow
- Shareholders' equity sheet
Question 7. A(n) ___________ asset is one which can be quickly converted into cash without significant loss in value.
- Current
- Fixed
- Liquid
- Long-term
Question 8. Relationships determined from a firm's financial information and used for comparison purposes are known as:
- Financial Ratios
- Comparison statements
- Dimensional analysis
- Solvency analysis
Question 9. When a firm chooses to buy a new fixed assets it is making a __________ decision.
- Financing
- Capital structure
- Capital budgeting
- Working capital
Question 10. When a firm makes a desisions regarding the level of its long-term debt financing.
- Capital budgeting
- Capital structure
- Financing
- Working capital
Question 11. The amount an investment is worth after one or more periods of time is the:
- Coumpound interest rate
- Principal value
- Future Value
- Present Value
Question 12. The process of accumulating interest on an investment over time to earn more interest is called.
- Growth
- Simple interest
- Compound interest
- Aggregate interest
Question 13. The current value of future cash flows discounted at the appropriate discount rate is called:
- Principal value
- Future Value
- Present value
- Compound interest rate
Question 14. The process of finding the present value of some future amount is often called:
- Growth
- Discounting
- Compounding
- Accumulation
Question 15. The stated interest payment, in dollars, made on a bond each period is called the bond's:
- Coupon
- Face value
- Maturity
- Yield to maturity
Question 16. A stock's next expected dividend divided by the current stock price is the:
- Current yield
- Total yield
- Dividend yield
- Earning yield
Question 17. The fixed asset turnover ratio is measured as:
- Sales minus net fixed assets.
- Sales times net fixed assets.
- Sales divided by net fixed assets.
- Net fixed assests divided by sales.
Question 18. The financial ratio measured as net income dividend by total assets is know as the firm's:
- Profit margin
- Return on assets
- Asset turnover
- Return on equiyt
Question 19. Ratios that measure how efficiently a firm's management uses its assets in operations to generate bottomline net income are know as:
- Assets management ratios.
- Long-term solvency ratios.
- Short-term solvency ratios.
- Profitability ratios.
- Market value ratios.
Question 20. The future value interest factor is calculated as: (Remember in my examples t = n.... time or number of periods, means the same thing)
- (1 + r)^t
- (1 + rt)
- (1 + r)(t)
- 1 + r - t
Question 21. Equity without priority for dividends or in the event of bankruptcy is called:
- Dual class stock
- Preferred stock
- Common stock
- Cumulative stock
Question 22. The rate at which the stock price is expected to appreciate (or depreciate) over time is the:
- Total yield
- Current yield
- Capital gains yield
- Total yield
- Earning yield
Question 23. Payments made by a corporation to its shareholders, in the form of either cash, stock, or payments in kind, are called:
- Redistribution
- Retained earnings
- Dividends
- Infused equity
- Net income
Question 24. The market in which new securities are originally sold to investors is the ___________ market.
- Dealer
- Auction
- Over-the-counter (OTC)
- Primary
- Secondary
Question 25. The market in which previously issued securities are traded amoung investors in the:
- Primary market
- Dealer market
- Secondary market
- Auction market
- OTC