Test 1 FIN 323 Review exam with correct |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answers
The Sarbanes-Oxley Act of 2002 holds a public company's ___ responsible for the accuracy of
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the company's financial statements - correct answer✔✔managers
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Usually, the treasurer of a corporation reports directly to the ___ - correct answer✔✔vice
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president of finance |||\\\ |||\\\
Ultimately, the ___ control(s) the corporation - correct answer✔✔shareholders |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Corporate dividends represent - correct answer✔✔aftertax income from the corporation |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
which becomes taxable income for the receipient
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Which of the following statements is correct? |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Partnerships are the most complicated type of business to form |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
All partnerships are required to have at least one limited partner
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
A general partnership is a legal person
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Only firms organized as partnerships have limited lives
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Taxable income earned by a partnership is treated as individual income - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔Taxable income earned by a partnership is treated as individual income |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Which one of the following is an agency cost? |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Investing in a new project that creates firm value |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Closing a division of the firm that is operating at a loss
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Increasing the quarterly dividend |||\\\ |||\\\ |||\\\
, Accepting an investment opportunity that will add value to the firm
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Hiring outside accountants to audit the company's financial statements - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔hiring outside accountants to audit the company's financial statements |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
A ______ has all the respective rights and privileges of a legal person.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
sole proprietorship - correct answer✔✔corporation
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Which one of the following statements is correct concerning the NYSE?
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The NYSE is the largest dealer market for listed securities in the United States.
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The listing requirements for the NYSE are more stringent than those of Nasdaq
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The publicly traded shares of an NYSE-listed firm must be worth at least $250 million.
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Any corporation desiring to be listed on the NYSE can do so for a fee.
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The NYSE is an OTC market functioning as both a primary and a secondary market. - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔The listing requirements for the NYSE are more stringent than those of Nasdaq |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Mario's Home Systems has sales of $2,850, costs of goods sold of $2,190, inventory of $510,
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
and accounts receivable of $433. How many days, on average, does it take Mario's to sell its
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
inventory? - correct answer✔✔85.00 days |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
During the past two years, both the cost per unit and the selling price per unit remained
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
constant at The Floor Store. The firm was able to increase the quantity of goods it sells while
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
holding the amount of inventory on hand at a constant level. This accomplishment will be
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
reflected in the firm's financial ratios in which one of the following ways? - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔Decrease in the days' sales in inventory |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Ratios that measure a firm's liquidity are known as ___ ratios. - correct answer✔✔short-term
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solvency
answers
The Sarbanes-Oxley Act of 2002 holds a public company's ___ responsible for the accuracy of
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
the company's financial statements - correct answer✔✔managers
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Usually, the treasurer of a corporation reports directly to the ___ - correct answer✔✔vice
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
president of finance |||\\\ |||\\\
Ultimately, the ___ control(s) the corporation - correct answer✔✔shareholders |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Corporate dividends represent - correct answer✔✔aftertax income from the corporation |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
which becomes taxable income for the receipient
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Which of the following statements is correct? |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Partnerships are the most complicated type of business to form |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
All partnerships are required to have at least one limited partner
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
A general partnership is a legal person
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Only firms organized as partnerships have limited lives
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Taxable income earned by a partnership is treated as individual income - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔Taxable income earned by a partnership is treated as individual income |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Which one of the following is an agency cost? |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Investing in a new project that creates firm value |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Closing a division of the firm that is operating at a loss
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Increasing the quarterly dividend |||\\\ |||\\\ |||\\\
, Accepting an investment opportunity that will add value to the firm
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Hiring outside accountants to audit the company's financial statements - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔hiring outside accountants to audit the company's financial statements |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
A ______ has all the respective rights and privileges of a legal person.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
sole proprietorship - correct answer✔✔corporation
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Which one of the following statements is correct concerning the NYSE?
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The NYSE is the largest dealer market for listed securities in the United States.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The listing requirements for the NYSE are more stringent than those of Nasdaq
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The publicly traded shares of an NYSE-listed firm must be worth at least $250 million.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Any corporation desiring to be listed on the NYSE can do so for a fee.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The NYSE is an OTC market functioning as both a primary and a secondary market. - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔The listing requirements for the NYSE are more stringent than those of Nasdaq |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Mario's Home Systems has sales of $2,850, costs of goods sold of $2,190, inventory of $510,
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
and accounts receivable of $433. How many days, on average, does it take Mario's to sell its
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
inventory? - correct answer✔✔85.00 days |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
During the past two years, both the cost per unit and the selling price per unit remained
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
constant at The Floor Store. The firm was able to increase the quantity of goods it sells while
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
holding the amount of inventory on hand at a constant level. This accomplishment will be
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
reflected in the firm's financial ratios in which one of the following ways? - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔Decrease in the days' sales in inventory |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Ratios that measure a firm's liquidity are known as ___ ratios. - correct answer✔✔short-term
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
solvency
