LSUS MHA 706 MIDTERM FINAL REVIEW
PAPER 2026 COMPLETE QUESTIONS AND
VERIFIED SOLUTIONS
◉ In finance, the value of a firm depends on its ability to generate
______.
cash flows
earnings per share
net working capital
net income
Answer: cash flows
◉ The short run is ______.
defined as one month
defined as more than one year
an imprecise period of time
defined as six months
Answer: an imprecise period of time
,◉ The cash flow identity states that cash flows from ______ should
equal cash flows to creditors and equity investors.
net working capital
assets
changes in net working capital
operations
Answer: assets
◉ A balance sheet reflects a firm's:
earnings per share over an unspecified time.
income at a specific time.
accounting value on a specific date.
economic value over a specified time period.
Answer: accounting value on a specific date
◉ Which of the following are classified as liabilities on a firm's
balance sheet?
marketable securities
accounts receivable
, accounts payable
long-term debt
Answer: c, d
◉ Long-term liabilities represent obligations of the firm lasting
more than ______.
1 year
90 days
1 month
6 months
Answer: 1 year
◉ Shareholders' equity equals Blank______.
current assets minus current liabilities
assets + liabilities
total assets minus total liabilities
total assets minus long-term debt
Answer: total assets minus total liabilities
PAPER 2026 COMPLETE QUESTIONS AND
VERIFIED SOLUTIONS
◉ In finance, the value of a firm depends on its ability to generate
______.
cash flows
earnings per share
net working capital
net income
Answer: cash flows
◉ The short run is ______.
defined as one month
defined as more than one year
an imprecise period of time
defined as six months
Answer: an imprecise period of time
,◉ The cash flow identity states that cash flows from ______ should
equal cash flows to creditors and equity investors.
net working capital
assets
changes in net working capital
operations
Answer: assets
◉ A balance sheet reflects a firm's:
earnings per share over an unspecified time.
income at a specific time.
accounting value on a specific date.
economic value over a specified time period.
Answer: accounting value on a specific date
◉ Which of the following are classified as liabilities on a firm's
balance sheet?
marketable securities
accounts receivable
, accounts payable
long-term debt
Answer: c, d
◉ Long-term liabilities represent obligations of the firm lasting
more than ______.
1 year
90 days
1 month
6 months
Answer: 1 year
◉ Shareholders' equity equals Blank______.
current assets minus current liabilities
assets + liabilities
total assets minus total liabilities
total assets minus long-term debt
Answer: total assets minus total liabilities
