BFIN 300 Test 2025- Questions with Correct
Verified Answers
Which one of the following is the financial statement which shows the accounting value of a
firms equity as of a particular date?
balance sheet
Net working capital is defined as
current assets minus current liabilities
Which one of these set forth the common set of standards and procedures by which audited
financial statements are prepared?
Generally Accepted Accounting Principles
Which one of the following accounts is the 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
Technically control of a firm ultimately rests with
shareholders
, which of the following should a financial manager consider when considering an
opportunity?
all of the above
Which one is a financial leverage ratio?
liabilities to equity
Which of the following ratios are considered market based ratios
Both a and B (P/E ratio—-P/BV)
Non cash items refer to
Expenses which do not directly affect net cash flows
Which of the following are current assets?
I and III (Cash and Acc Receivable)
Which of the following are included in current liabilities?
III and IV (Acc payable to the supplier due next week---Loan payable to the bank in 10 months)
Which of the following statements concerning net working capital is correct?
Net working capital may be a negative value
A business partner whose potential financial loss in the partnership will not exceed his or
her investment in that partnership is called
Limited partner
Verified Answers
Which one of the following is the financial statement which shows the accounting value of a
firms equity as of a particular date?
balance sheet
Net working capital is defined as
current assets minus current liabilities
Which one of these set forth the common set of standards and procedures by which audited
financial statements are prepared?
Generally Accepted Accounting Principles
Which one of the following accounts is the 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
Technically control of a firm ultimately rests with
shareholders
, which of the following should a financial manager consider when considering an
opportunity?
all of the above
Which one is a financial leverage ratio?
liabilities to equity
Which of the following ratios are considered market based ratios
Both a and B (P/E ratio—-P/BV)
Non cash items refer to
Expenses which do not directly affect net cash flows
Which of the following are current assets?
I and III (Cash and Acc Receivable)
Which of the following are included in current liabilities?
III and IV (Acc payable to the supplier due next week---Loan payable to the bank in 10 months)
Which of the following statements concerning net working capital is correct?
Net working capital may be a negative value
A business partner whose potential financial loss in the partnership will not exceed his or
her investment in that partnership is called
Limited partner
