Question 1: Increasing an asset is a
a) debit
b) credit
Question 2: What are the four basic categories of financial ratios?
Question 3: Assets = Owner's Equity + ______________
Question 4: __________ provides a financial summary of firms' operating results during a specified period.
Question 5: __________ presents a summary statement of the firm's financial position at a given point in time.
Question 6: The Statement of Cash flows provides insight into firm's ____________, investment and __________ cash flows.
Question 7: Price/Earnings Ratio is calculated by
a) Par Value/Net Income
b) Market Price/Earnings per Share
c) Market Price/Net Income
d) Par Value/Earnings per Share
Question 8: A Cash Budget
a) contains investing activities
b) is a pro forma statement
c) is planned inflows and outflows of cash
Question 9: Treasury Stock is
a) shares repurchased by firm
b) shares with no voting rights
c) shares owned by small group of owners
Question 10: An example of the over the counter exchange is
a) NASDAQ
b) NYSE
c) AMEX
d) Chicago Stock Exchange
Question 11: Which input is not required for preparing a pro forma statement
a) financial statements for preceding year
b) sales forecast for coming year
c) cash budget
Question 12: Primary Market represents
a) a financial market where preowned securities are traded
b) a financial market where new securities are traded
c) short term funds
Question 13: Operating budgets start with
a) operating expense budget
b) financial statements
c) sales budget
Question 14: Liquidity Risk relates to
a) unfavorable change in tax law
b) issuer not paying debt
c) ease of conversion to cash
d) longer maturity
Question 15: Which is not a benefit of budgeting
a) motivated employees
b) promotes coordination and communication
c) planning
d) provide raises for employees
Question 16: Preferred Stock does not have
a) voting rights
b) call features
c) conversion features