In this paperwork of FIN 200 CheckPoint Week Six Quiz you will find the answers on the next questions:<\/b><\/p>\n
1) Permanent current assets are not a factor in a manager’s decision making process when all current assets will be <\/p>\n
A. self-liquidating.<\/p>\n
B. long-term in nature.<\/p>\n
C. financed by short-term debt.<\/p>\n
D. internally financed.<\/p>\n
2) A “normal” term structure of interest rates would depict <\/p>\n
A. no general relationship between short- and long-term rates.<\/p>\n
B. long-term rates higher than short-term rates.<\/p>\n
C. short-term rates higher than long-term rates.<\/p>\n
D. medium rates (1-5 years) lower than both short-term and long-term rates.<\/p>\n
3) The theory of the term structure of interest rates which suggests that long-term rates are determined by the average of short-term rates expected over the time that a long-term bond is outstanding is the <\/p>\n
A. liquidity premium theory.<\/p>\n
B. segmentation theory.<\/p>\n
C. expectations hypothesis.<\/p>\n
D. market average rate theory.<\/p>\n
4) Frisch Fish Corp expects net income next year to be $600,000. Inventory and accounts receivable will have to be increased by $300,000 to accommodate this sales level. Frisch will pay dividends of $400,000. How much external financing will Frisch Fish need assuming no organically generated increase in liabilities? <\/p>\n
A. $200,000<\/p>\n
B. $100,000<\/p>\n
C. No external financing is required.<\/p>\n
D. $300,000<\/p>\n
5) Which of the following is not a true statement about automated clearinghouses (ACHs)? <\/p>\n
A. Debits drawn on automated clearinghouses cost less than half that of checks processed through financial institutions.<\/p>\n
B. Commercial transactions using automated clearinghouses have been growing at close to 17% per year since 1989.<\/p>\n
C. Automated clearinghouses are responsible for the check clearing process between commercial banks and the Federal Reserve Banks.<\/p>\n
D. The ability to reduce transactions costs and create convenience is driving the growth of automated clearinghouses.<\/p>\n
6) One of the first considerations in cash management is <\/p>\n
A. profitability.<\/p>\n
B. synchronization of cash inflows and cash outflows.<\/p>\n
C. to have as much cash as possible on hand.<\/p>\n
D. to put any excess cash into accounts receivable.<\/p>\n
7) Assuming that we can earn a 13.5% return on accounts receivable, which of the following actions to finance an increase in our accounts receivable balance would be optimal? <\/p>\n
A. an increase in bank loans that would cost us 11.5%.<\/p>\n
B. a decrease in inventories which are earning a 17.6% return.<\/p>\n
C. a reduction in marketable securities which are earning a return of 14.2%.<\/p>\n
D. an increase in accounts payable that would cost our firm 15%.<\/p>\n
8) Hedging <\/p>\n
A. is a legal agreement to buy or sell a financial futures contract.<\/p>\n
B. increases risk.<\/p>\n
C. is a way to protect your accounts receivable position.<\/p>\n
D. can be carried out with a futures contract.<\/p>\n
POSSIBLE QUESTIONS<\/p>\n
When the yield curve is downward sloping, generally a financial manager should <\/p>\n
A. utilize short-term financing<\/p>\n
B. increase investment and level of financing overall<\/p>\n
C. expect an economic boom<\/p>\n
D. utilize long-term financing<\/p>\n
Which of the following is not a method of speeding up collections? <\/p>\n
A. All of these are methods for speeding up collections.<\/p>\n
B. Extended disbursement float.<\/p>\n
C. Lock-box system.<\/p>\n
D. Regional collection centers.<\/p>\n","protected":false},"excerpt":{"rendered":"
In this paperwork of FIN 200 CheckPoint Week Six Quiz you will find the answers on the next questions: 1) Permanent current assets are not a factor in a manager’s decision making process when all current assets will be A. Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-117521","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/117521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=117521"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/117521\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=117521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=117521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=117521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}