{"id":70742,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/finc400-quiz-1-finc400-quiz-1"},"modified":"2017-08-18T06:15:20","modified_gmt":"2017-08-18T06:15:20","slug":"finc400-quiz-1-finc400-quiz-1","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/finc400-quiz-1-finc400-quiz-1\/","title":{"rendered":"FINC400 quiz 1 \/ FINC400 quiz 1"},"content":{"rendered":"<p>Question 1 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>The firm\u2019s price-earnings (P\/E) ratio is influenced by its<\/p>\n<p>A. capital structure<\/p>\n<p>B. earnings volatility<\/p>\n<p>C. sales, profit margins, and earnings<\/p>\n<p>D. all of these<\/p>\n<p>Question 2 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>The primary disadvantage of accrual accounting is that<\/p>\n<p>A.it does not match revenues and expenses in the period in which they are incurred<\/p>\n<p>B.it does not appropriately measure accounting profit&nbsp;<\/p>\n<p>C.it does not recognize accounts receivable<\/p>\n<p>D.it does not adequately show the actual cash flow position of the firm<\/p>\n<p>Question 3 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>Total assets of a firm are financed with liabilities and stockholders&#8217; equity<\/p>\n<p>True<\/p>\n<p>False&nbsp;<\/p>\n<p>Question 4 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>Gross profit is equal to<\/p>\n<p>A.sales minus cost of goods sold<\/p>\n<p>B.sales minus (selling and administrative expenses)<\/p>\n<p>C. sales minus (cost of goods sold and selling and administrative expenses).<\/p>\n<p>D. sales minus (cost of goods sold and depreciation expense).<\/p>\n<p>Question 5 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>The higher the profit of a firm, the higher the value the firm is assured of receiving in the market<\/p>\n<p>A. True<\/p>\n<p>B. False<\/p>\n<p>Question 6 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>Ratios are used to compare different firms in the same industry<\/p>\n<p>A. True<\/p>\n<p>B. False<\/p>\n<p>Question 7 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>The Sarbanes-Oxley Act was passed in an effort to<\/p>\n<p>A. protect small business from large corporations dominating the market<\/p>\n<p>B. ensure that partnerships divide profits among partners in a fair manner<\/p>\n<p>C. guarantee outside auditors can control corporate accounting practices<\/p>\n<p>D. control corrupt corporate behavior<\/p>\n<p>Question 8 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>Which of the following is not subtracted out in arriving at operating income?<\/p>\n<p>A. interest expense<\/p>\n<p>B. cost of goods sold<\/p>\n<p>C. depreciation<\/p>\n<p>D. selling and administrative expense<\/p>\n<p>Question 9 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>Which of the following is not a primary source of capital to the firm?<\/p>\n<p>A. assets<\/p>\n<p>B. common stock<\/p>\n<p>C. preferred stock<\/p>\n<p>D. bonds<\/p>\n<p>Question 10 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>A firm has $1,500,000 in its common stock account and $1,000,000 in its paid-in capital account. The firm issued 100,000 shares of common stock. What was the original issue price if only one stock issue has ever been sold?<\/p>\n<p>A.$35 per share<\/p>\n<p>B.$25 per share<\/p>\n<p>C.$15 per share<\/p>\n<p>D. Not enough information to tell<\/p>\n<p>Question 11 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>Debt utilization ratios are used to evaluate the firm&#8217;s debt position with regard to its asset base and earning power.<\/p>\n<p>A. True<\/p>\n<p>B. False<\/p>\n<p>Question 12 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>A firm with earnings per share of $3 and a price-earnings ratio of 20 will have a stock price of<\/p>\n<p>A.$60.00<\/p>\n<p>B.$15.00<\/p>\n<p>C. $6.67<\/p>\n<p>D. the market assigns a stock price independent of EPS and the P\/E ratio.<\/p>\n<p>Question 13 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>The P\/E ratio is strongly related to the past performance of the firm<\/p>\n<p>A. True<\/p>\n<p>B. False<\/p>\n<p>Question 14 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>Money markets would include which of the following securities?<\/p>\n<p>A.common stock and corporate bonds<\/p>\n<p>B.treasury bills and commercial paper<\/p>\n<p>C.certificates of deposit and preferred stock<\/p>\n<p>D.all of these<\/p>\n<p>Question 15 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>Agency theory assumes that corporate managers act to increase the wealth of corporate shareholders<\/p>\n<p>A. True<\/p>\n<p>B. False<\/p>\n<p>Question 16 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>Preferred stock is excluded from stockholders equity because it does not have full voting rights<\/p>\n<p>A. True<\/p>\n<p>B. False<\/p>\n<p>Question 17 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>Sales minus cost of goods sold is equal to earnings before taxes<\/p>\n<p>A. True<\/p>\n<p>B. False<\/p>\n<p>Question 18 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>Asset utilization ratios<\/p>\n<p>A. relate balance sheet assets to income statement sales<\/p>\n<p>B. measure how much cash is available for reinvestment into current assets<\/p>\n<p>C. are most important to stockholders<\/p>\n<p>D. measures the firm&#8217;s ability to generate a profit on sales<\/p>\n<p>Question 19 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>The P\/E ratio provides no indication of investors&#8217; expectations about the future of a company<\/p>\n<p>A. True<\/p>\n<p>B. False<\/p>\n<p>Question 20 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>Asset utilization ratios relate balance sheet assets to income statement sales<\/p>\n<p>A. True<\/p>\n<p>B. False<\/p>\n<p>Question 21 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>Financial markets exist as a vast global network of individuals and financial institutions that may be lenders, borrowers, or owners of public companies worldwide.<\/p>\n<p>A. True<\/p>\n<p>B. False<\/p>\n<p>Question 22 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>Which of the following is an outflow of cash?<\/p>\n<p>A.profitable operations<\/p>\n<p>B.the sale of equipment<\/p>\n<p>C.the sale of the company\u2019s common stock<\/p>\n<p>D.the payment of cash dividends<\/p>\n<p>Question 23 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>The Bubba Corp. had earnings before taxes of $400,000 and sales of $2,000,000. If it is in the 40% tax bracket its after-tax profit margin is:<\/p>\n<p>A. 40%<\/p>\n<p>B. 12%<\/p>\n<p>C. 20%<\/p>\n<p>D. 25%<\/p>\n<p>Question 24 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>The income statement is the major device for measuring the profitability of a firm over a period of time.<\/p>\n<p>A. True<\/p>\n<p>B. False<\/p>\n<p>Question 25 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points<\/p>\n<p>Which of the following is an inflow of cash?<\/p>\n<p>A.funds spent in normal business operations<\/p>\n<p>B.the purchase of a new factory<\/p>\n<p>C.the sale of the firm&#8217;s bonds<\/p>\n<p>D.the retirement of the firm&#8217;s bonds<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Question 1 of 25&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;4.0 Points The firm\u2019s price-earnings (P\/E) ratio is influenced by its A. capital structure B. earnings volatility C. sales, profit margins, and earnings D. all of these Question 2 <a href=\"https:\/\/www.benedictsol.com\/blogs\/finc400-quiz-1-finc400-quiz-1\/\" class=\"read-more\">Read More &#8230;<\/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-70742","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/70742","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=70742"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/70742\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=70742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=70742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=70742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}