LSUS MBA 702 - Zhu - Module 1 Final
Exam Questions and Actual Answers.
Which one of the following financial reports shows the accounting value of a firm's equity as of
a particular date?
a. Creditor's statement
b. Dividend statement
c. Statement of cash flows
d. Income statement
e. Balance sheet - Answer Balance Sheet
Which one of the following items is a current liability?
a. A note payable to a lender in 18 months
b. An amount due from a customer within 90 days
c. An invoice payable to a supplier in 45 days
d. A loan payable to the bank in 4 years
e. A past due amount due from a customer - Answer An invoice payable to a supplier in 45
days
Which one of the following statements related to liquidity is correct?
a. Liquid assets are valuable to a firm.
b. Inventory is more liquid than accounts receivable because inventory is tangible.
c. Liquid assets are defined as assets that can be sold quickly regardless of the price obtained.
d. Any asset that can be sold for cash is considered liquid.
e. Liquid assets tend to earn a higher rate of return than illiquid assets. - Answer Liquid
assets are valuable to a firm.
Which one of the following statements related to the cash flow to creditors must be correct?
a. If the cash flow to creditors is negative, the firm must have a negative cash flow from assets.
b. A positive cash flow to creditors represents a net cash outflow from the firm.
c. If the cash flow to creditors is positive, the firm must have borrowed more money than it
repaid.
Exam Questions and Actual Answers.
Which one of the following financial reports shows the accounting value of a firm's equity as of
a particular date?
a. Creditor's statement
b. Dividend statement
c. Statement of cash flows
d. Income statement
e. Balance sheet - Answer Balance Sheet
Which one of the following items is a current liability?
a. A note payable to a lender in 18 months
b. An amount due from a customer within 90 days
c. An invoice payable to a supplier in 45 days
d. A loan payable to the bank in 4 years
e. A past due amount due from a customer - Answer An invoice payable to a supplier in 45
days
Which one of the following statements related to liquidity is correct?
a. Liquid assets are valuable to a firm.
b. Inventory is more liquid than accounts receivable because inventory is tangible.
c. Liquid assets are defined as assets that can be sold quickly regardless of the price obtained.
d. Any asset that can be sold for cash is considered liquid.
e. Liquid assets tend to earn a higher rate of return than illiquid assets. - Answer Liquid
assets are valuable to a firm.
Which one of the following statements related to the cash flow to creditors must be correct?
a. If the cash flow to creditors is negative, the firm must have a negative cash flow from assets.
b. A positive cash flow to creditors represents a net cash outflow from the firm.
c. If the cash flow to creditors is positive, the firm must have borrowed more money than it
repaid.
