Sophia Principles Of Finance Milestone 1 Questions
And Answers With Updated Study Solutions
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25/27 that's 93%
RETAKE
25 questions were answered correctly.
2 questions were answered incorrectly.
1
A software company issues shares of stock to the public for the first time in
order to raise funds for a planned product expansion.
What financial market is the company participating in?
Primary money market
Secondary capital market
Secondary money market
Primary capital market
RATIONALE
The issuance of shares for the first time makes this a primary market. The
fact that this is stock makes this capital market.
CONCEPT
Financial Markets Report an issue with this
question
2
, lOMoAR cPSD| 7670600
Total current assets
Deferred income taxes
Inventories
Prepaid expenses
Other assets
Total current liabilities
Consider the following information:
What is the quick ratio?
1.82
2.09
1.90
2.02
RATIONALE
The quick ratio subtracts inventories from current assets before dividing by
current liabilities. This is based on the idea that inventory is not quite as
liquid as other current assets.
Use this calculation:
And Answers With Updated Study Solutions
, lOMoAR cPSD| 7670600
25/27 that's 93%
RETAKE
25 questions were answered correctly.
2 questions were answered incorrectly.
1
A software company issues shares of stock to the public for the first time in
order to raise funds for a planned product expansion.
What financial market is the company participating in?
Primary money market
Secondary capital market
Secondary money market
Primary capital market
RATIONALE
The issuance of shares for the first time makes this a primary market. The
fact that this is stock makes this capital market.
CONCEPT
Financial Markets Report an issue with this
question
2
, lOMoAR cPSD| 7670600
Total current assets
Deferred income taxes
Inventories
Prepaid expenses
Other assets
Total current liabilities
Consider the following information:
What is the quick ratio?
1.82
2.09
1.90
2.02
RATIONALE
The quick ratio subtracts inventories from current assets before dividing by
current liabilities. This is based on the idea that inventory is not quite as
liquid as other current assets.
Use this calculation:
