Olkach

BUS 401 Week 1 Quiz.

Dec 1st, 2014
216
Never
Not a member of Pastebin yet? Sign Up, it unlocks many cool features!
  1. This archive file of BUS 401 Week 1 Quiz consists of:
  2. 1. The income statement for Brit, Inc. Indicates that tax expense was $20,000. The balance sheet indicates that taxes payable for the same year increased by $ 5,000. What amount did Brit, Inc. actually pay in taxes during this year?
  3. 2. A financial manager is considering two projects, A and B. A is expected to add $ 2 million to profits this year while B is expected to add $ 1 million to profits this year. Which of the following statements is most correct?
  4. 3. Which of the following statements about depreciation is true?
  5. 4. The principle of risk-return tradeoff means that _____
  6. 5. The quick ratio of a firm would be increased by which of the following?
  7. 6. Common sized income statements ___________
  8. 7. The December 31, 2007 balance sheet shows net fixed assets of $100,000 and the December 31, 2008 balance sheet shows net fixed assets of $140,000. Depreciation expense for 2007 is $15,000 and depreciation expense for 2008 is $20,000. Based on the information, the cost of fixed assets purchased during 2008 is ________
  9. 8. Project A is expected to generate positive cash flow of $ 1 million in 10 years while Project B is expected to generate $ 500,000 in 5 years. Therefore, _______
  10. 9. Global.Com has cash of $75,000; short term notes payable of $100,000; accounts receivable of $275,000; accounts payable of $135,000; inventories of $350,000; and accrued expenses of $75,000. What is Global
  11. 1.
  12.  
  13. Question :
  14.  
  15. The financial goal of a for-profit business is:
  16.  
  17. Student Answer:
  18.  
  19. profit maximization.
  20.  
  21. owner wealth maximization.
  22.  
  23. cash flow maximization.
  24.  
  25. utility maximization.
  26.  
  27. Instructor Explanation:
  28.  
  29. The answer can be found in the introduction to Chapter 1.
  30.  
  31. Points Received:
  32.  
  33. 1 of 1
  34.  
  35. Comments:
  36.  
  37. 2.
  38.  
  39. Question :
  40.  
  41. Suppose two investments produce the same expected cash flows. We would assign a higher value to the investment with:
  42.  
  43. Student Answer:
  44.  
  45. lower risk.
  46.  
  47. higher cash flow variability.
  48.  
  49. higher risk.
  50.  
  51. the highest possible cash flows under ideal conditions.
  52.  
  53. Instructor Explanation:
  54.  
  55. The answer can be found in Section 1.1: Valuation.
  56.  
  57. Points Received:
  58.  
  59. 1 of 1
  60.  
  61. Comments:
  62.  
  63. 3.
  64.  
  65. Question :
  66.  
  67. Opportunity costs can vary over time and:
  68.  
  69. Student Answer:
  70.  
  71. are almost always close to 10%.
  72.  
  73. represent the highest possible return you can earn on an investment.
  74.  
  75. are always based on the interest rate offered on bank savings accounts.
  76.  
  77. set a return that other investments must equal or exceed to be attractive.
  78.  
  79. Instructor Explanation:
  80.  
  81. The answer can be found in Section 1.1: Valuation.
  82.  
  83. Points Received:
  84.  
  85. 1 of 1
  86.  
  87. Comments:
  88.  
  89. 4.
  90.  
  91. Question :
  92.  
  93. Time is a factor when determining the value of a possible investment. As investors, all else being equal, we value investments:
  94.  
  95. Student Answer:
  96.  
  97. more the longer we have to wait for the payoff.
  98.  
  99. less the longer we have to wait for the payoff.
  100.  
  101. with predefined wait times for payoff.
  102.  
  103. regardless of time because a dollar is always a dollar.
  104.  
  105. Instructor Explanation:
  106.  
  107. The answer can be found in Section 1.1: Valuation.
  108.  
  109. Points Received:
  110.  
  111. 1 of 1
  112.  
  113. Comments:
  114.  
  115. 5.
  116.  
  117. Question :
  118.  
  119. An investment, such as a bond, will have a higher expected return (or yield) if it:
  120.  
  121. Student Answer:
  122.  
  123. has a higher purchase price.
  124.  
  125. holds a higher rating, such as AAA or AA.
  126.  
  127. carries greater risk.
  128.  
  129. has been issued by a well-known company.
  130.  
  131. Instructor Explanation:
  132.  
  133. The answer can be found in Section 1.1:
  134.  
  135. For downloading more course tutorials visit - https://bitly.com/12BGu2p
  136.  
  137. Getting ready to go to college might be a hectic and nervous time in your life. This is perfectly understandable, you are taking a big step and will probably be living away from home for the first time ever. Don't fret, this article will provide you with some great tips on how you can be ready.
RAW Paste Data

Adblocker detected! Please consider disabling it...

We've detected AdBlock Plus or some other adblocking software preventing Pastebin.com from fully loading.

We don't have any obnoxious sound, or popup ads, we actively block these annoying types of ads!

Please add Pastebin.com to your ad blocker whitelist or disable your adblocking software.

×