FIN 320 EXAM 1 QUESTIONS & VALID
ANSWERS 100% CORRECT
Will and Bill are two friends that like to surf, they embark on a business venture renting
surfboards in California. Will is in charge of daily operations and asked Bill to invest
10,000 to help start the business. What form of business do they have? - Correct
Answer ✔✔ Limited Partnership
Which ratio provides the best measure of how many cents a company retains on every
dollar it sells?
A. Return on Assets
B. Profit Margin
C. Price Earning
D. Earnings per Share - Correct Answer ✔✔ B
A domestic securities analyst would fall into which type of finance - Correct Answer ✔✔
Investments
As a manager, you are deciding how much credit to extend your customers. What type
of decision are you facing? - Correct Answer ✔✔ Working capital Management
This year your firm decreases current assets and increases current liabilities, as a
result- what happened to the firms New Working Capital? - Correct Answer ✔✔ NWC
Decreases
total asset turnover falls into the _____________ ratio category - Correct Answer ✔✔
Activity
Laker club has total assets of 31,300, long-term debt of 8,700, net fixed assets of
19,400, and owners equity of 22,100. What is net working capital? - Correct Answer ✔✔
11,400
Grand Valley reality Inc. has sales of 200,000 ad retains of .15 on every dollar it sells. If
the company has 5000 shares of stock and pays total dividends of 7000 what are the
earnings per share. - Correct Answer ✔✔ 6.00
What is the primary difference in measurement between the current ratio and the quick
ratio? - Correct Answer ✔✔ Inventory
A firm decides make a decision that decreases their liquidity. what decision did the firm
just make? - Correct Answer ✔✔ Cash Purchase of Inventory
Which one of the following will increase the profit margin of a firm, all else held consent?
- Correct Answer ✔✔ Decrease in the tax rate
ANSWERS 100% CORRECT
Will and Bill are two friends that like to surf, they embark on a business venture renting
surfboards in California. Will is in charge of daily operations and asked Bill to invest
10,000 to help start the business. What form of business do they have? - Correct
Answer ✔✔ Limited Partnership
Which ratio provides the best measure of how many cents a company retains on every
dollar it sells?
A. Return on Assets
B. Profit Margin
C. Price Earning
D. Earnings per Share - Correct Answer ✔✔ B
A domestic securities analyst would fall into which type of finance - Correct Answer ✔✔
Investments
As a manager, you are deciding how much credit to extend your customers. What type
of decision are you facing? - Correct Answer ✔✔ Working capital Management
This year your firm decreases current assets and increases current liabilities, as a
result- what happened to the firms New Working Capital? - Correct Answer ✔✔ NWC
Decreases
total asset turnover falls into the _____________ ratio category - Correct Answer ✔✔
Activity
Laker club has total assets of 31,300, long-term debt of 8,700, net fixed assets of
19,400, and owners equity of 22,100. What is net working capital? - Correct Answer ✔✔
11,400
Grand Valley reality Inc. has sales of 200,000 ad retains of .15 on every dollar it sells. If
the company has 5000 shares of stock and pays total dividends of 7000 what are the
earnings per share. - Correct Answer ✔✔ 6.00
What is the primary difference in measurement between the current ratio and the quick
ratio? - Correct Answer ✔✔ Inventory
A firm decides make a decision that decreases their liquidity. what decision did the firm
just make? - Correct Answer ✔✔ Cash Purchase of Inventory
Which one of the following will increase the profit margin of a firm, all else held consent?
- Correct Answer ✔✔ Decrease in the tax rate
