Foundations of Business Finance (Peregrine) exam questions with answers

Foundations of Business Finance (Peregrine) |\ |\ |\ |\ |\




exam questions with answers|\ |\ |\




True or false: The one fixed asset that is not depreciated is land
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because it seldom declines in value. - CORRECT ANSWERS ✔✔True
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__________ liabilities are those due within one year. - CORRECT
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ANSWERS ✔✔Current |\




__________-__________ __________ liabilities are due after more than |\ |\ |\ |\ |\ |\ |\ |\



a year, and may include bonds, mortgages, and long-term loans. -
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CORRECT ANSWERS ✔✔Long-term debt |\ |\ |\




Name the three types of accounts listed as current liabilities on
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balance sheets. - CORRECT ANSWERS ✔✔(1) Accounts Payable
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(2) Notes Payable
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(3) Accrued Expenses
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Accounts payable - CORRECT ANSWERS ✔✔The amounts owed for
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credit purchases by a firm
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Notes payable - CORRECT ANSWERS ✔✔Outstanding short-term
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loans, typically from commercial banks
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, Accrued expenses - CORRECT ANSWERS ✔✔Costs that have been
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incurred by a firm which have not yet been paid; examples of
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accruals include taxes owed to the government and unpaid wages
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The __________ __________ section of a balance sheet provides
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information about the claims against a firm held by investors who
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own preferred and common shares. - CORRECT ANSWERS
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✔✔Stockholders' equity |\




The Stockholders' equity section of the balance sheet is reflected
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in four types of accounts. These include __________ __________,
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__________ __________, __________-__________-__________ __________
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___________ __________ __________, and __________ __________. -
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CORRECT ANSWERS ✔✔(1) preferred stock |\ |\ |\ |\




(2) common stock
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(3) paid-in-capital excess of par
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(4) retained earnings
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__________ __________ shows the total proceeds from the sale of
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preferred stock. - CORRECT ANSWERS ✔✔Preferred stock
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__________-__________-__________ __________ __________ __________ |\ |\ |\ |\



__________ equals the number of shares outstanding multiplied by
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the original selling price of the shares, net of the par value. -
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CORRECT ANSWERS ✔✔Paid-in-capital in excess of par
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__________ __________ equals the number of outstanding common
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shares multiplied by the par value per share. - CORRECT ANSWERS
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✔✔Common stock
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