F C09V Principles of Finance - Module 5 Quiz | Score 100/100 | Ashworth College

Principles of Finance – Module 5 Quiz

Question 1 points

A good control system helps to ensure that plans are executed properly and to facilitate
a timely modification of plans if the assumptions upon which the initial plans are based
turn out to be inaccurate.

Question options:


True


False

Question 2 points

Two firms have the same current ratio, 0.75, and the same amount of sales. However,
Firm A has a higher inventory turnover ratio than Firm B. Therefore, we can conclude
that the quick ratio of Firm A will be smaller than that of Firm B.

Question options:


True


False

Question 3 points

____ is a residual that represents the amount that stockholders would receive if all of
the firm's assets could be sold at their book values and all of their liabilities could be
paid at their book values.

Question options:

a) Net worth


b) Retained earnings


c) Paid-in-capital


d) Total assets

Question 4 points

Compuvac Company has just completed its first pass forecast using the projected
balance sheet method. The firm has determined that it needs $4 million in new debt
which can be sold at par with a 10% annual coupon. Additionally, the firm will sell