FINANCE 301 Test | 25 Questions Solved 100%
Correct | Verified Answers
The going Concern assumption states that : - ANSWER The company is going to continue
to be in business indefinitely
The four risk characteristics of bonds are - ANSWER Marketability, call feature, default
risk, term-to-maturity
All else being equal what will decrease a firms current ratio? - ANSWER An increase in
accounts payable
A portfolio with a level of systemic risk that is the same as the market has a beta that is?
- ANSWER Equal to one
Convertible bonds can be converted into shares of preferred stock at some
predetermined ratio at the discretion of the bond holder - ANSWER False
What is the difference between the FIFO and LIFO inventory methods of valuing
inventory - ANSWER During a period of rising prices, LIFO implies that a firm is selling
the higher cost, newer inventory first, with the lower cost, older inventory on the
balance sheet.
According to the realization principle revenue from a sale of a firm's products are
recognized when the - ANSWER Sales occurs whether or not cash is actually received
What is the measure of the stocks systematic risk - ANSWER Beta
Correct | Verified Answers
The going Concern assumption states that : - ANSWER The company is going to continue
to be in business indefinitely
The four risk characteristics of bonds are - ANSWER Marketability, call feature, default
risk, term-to-maturity
All else being equal what will decrease a firms current ratio? - ANSWER An increase in
accounts payable
A portfolio with a level of systemic risk that is the same as the market has a beta that is?
- ANSWER Equal to one
Convertible bonds can be converted into shares of preferred stock at some
predetermined ratio at the discretion of the bond holder - ANSWER False
What is the difference between the FIFO and LIFO inventory methods of valuing
inventory - ANSWER During a period of rising prices, LIFO implies that a firm is selling
the higher cost, newer inventory first, with the lower cost, older inventory on the
balance sheet.
According to the realization principle revenue from a sale of a firm's products are
recognized when the - ANSWER Sales occurs whether or not cash is actually received
What is the measure of the stocks systematic risk - ANSWER Beta
