BFIN 300 final Exam- Questions with Correct
Verified Answers
Which one of the following is the financial statement which shows the accounting value of a
firm's equity as of a particular date?
Balance Sheet
Net Working Capitol is defined as
Current assets - current liabilities
Which of the following is most liquid?
accounts receivable
The process of planning and managing a firm's long-term investments is called:
Capital Budgeting
Which of the following forms of business organization is subject to double taxation
corporation
Control of the firm ultimately lies with..
Shareholders
which one one is a financial leverage ratio
Liabilities to equity
what are market based ratios
P/E and P/BV
,non cash items refer to
Expenses which do not directly affect cash flows
Which statement is true concerning net capital
Net working capital may be a negative value
which account are always included in working capital managements
Accounts Payable & Accounts Receivable
what best describes the primary advantage of being a limited partner
Maximum loss limites to the capital investment
The sources and uses of cash are stated on the
Statement of cash flows
what ratio measures a company's liquidity
Quick Ratio
Bond yields are the combined effect of
inflation
rate risk
default risk
taxability
What does inversely proportional mean
interests rates declining , bond values increasing
, interest earned on both the initial principal and the interest reinvested is called
Compound interest
simple interest
interest paid on the principal alone
what best describes an auction market
London Stock exchange
No bonds are exempt form being taxed
true
what is a best example of an interest only security
US Treasury bill
what is the real rate of interests
interest rate less inflation rate
which security has a residual claim on a company's cash flows?
Equity
what is the best definition of a derivative
A security where the value is based on the value of another security
A Pfizer bond pays an 8% coupon rate on a bond provided that its return on equity (ROE)
exceeds 8%. Which type of investment security is this
Income bond
Verified Answers
Which one of the following is the financial statement which shows the accounting value of a
firm's equity as of a particular date?
Balance Sheet
Net Working Capitol is defined as
Current assets - current liabilities
Which of the following is most liquid?
accounts receivable
The process of planning and managing a firm's long-term investments is called:
Capital Budgeting
Which of the following forms of business organization is subject to double taxation
corporation
Control of the firm ultimately lies with..
Shareholders
which one one is a financial leverage ratio
Liabilities to equity
what are market based ratios
P/E and P/BV
,non cash items refer to
Expenses which do not directly affect cash flows
Which statement is true concerning net capital
Net working capital may be a negative value
which account are always included in working capital managements
Accounts Payable & Accounts Receivable
what best describes the primary advantage of being a limited partner
Maximum loss limites to the capital investment
The sources and uses of cash are stated on the
Statement of cash flows
what ratio measures a company's liquidity
Quick Ratio
Bond yields are the combined effect of
inflation
rate risk
default risk
taxability
What does inversely proportional mean
interests rates declining , bond values increasing
, interest earned on both the initial principal and the interest reinvested is called
Compound interest
simple interest
interest paid on the principal alone
what best describes an auction market
London Stock exchange
No bonds are exempt form being taxed
true
what is a best example of an interest only security
US Treasury bill
what is the real rate of interests
interest rate less inflation rate
which security has a residual claim on a company's cash flows?
Equity
what is the best definition of a derivative
A security where the value is based on the value of another security
A Pfizer bond pays an 8% coupon rate on a bond provided that its return on equity (ROE)
exceeds 8%. Which type of investment security is this
Income bond
