1. Which of the following entities is more concerned about control than any other entity?
A. Vendors
B. Suppliers
C. Both A and B
D. None of the above
2. Which of the following is associated with flexibility ?
A. Obsolescence of a major product line
B. Downtown in sales
D. Downturn in business cycle
C. None of the above
3. The benefit cost ratio is 8 and the investment is 200. The total incremental cash flows are:
A. 200
B. 400
C. 600
D. None of the above
4. Jim’s LLC is purchasing a new machine for $180,000. The new machine would generate cash flow $100,000 for each of the next three years. Carpet uses a discount rate of 15%. What is the payback(in years)?
A. 1.4
B. 1.6
C. 1.8
D. 1.9
5. Which of the following statement records a firm’s financial situation on a single day?
A. Statement of financial position
B. Income statement
C. Statement of cash flows
D. All of the above.