Treasury Management Questions And Correct Detailed Verified Answers Guaranteed Pass.

The Quantitative Easing done by the Federal Reserve during the great recession used which monetary policy tool? - correct answer Buying bonds by the Federal Open Market Operations of the Fed The Glass Steagall Act was basically repealed through which act of Congress? - correct answer Allowing Financial Holding Companies Breaking the buck refers to - correct answer Not permitting MMF (money market fund) to go below $1 NAV in most circumstance Monetary Control Act of 1980 assisted in loosening the economy by - correct answer Reducing float in the payment system In case of bankruptcy, what is the order of payment? - correct answer 1. Senior Debt 2. Bankruptcy Trustee 3. Taxes Owed 4. Subordinated bondholders 5. Common Shareholders A retail brokerage firm is MOST like which one of the following types of financial institutions? - correct answer Investment Banks The type of underwriting that is most risky to the company putting out the public offering - correct answer Best Efforts Underwriting What is the service a commercial bank traditionally does NOT make money from? - correct answer Underwriting security issued to the public All of these are attributes of Jumbo CDs except: - CDs must be held to maturity - They are negotiable instruments with a secondary market - "The minimum denomination is $100,000" - The funds invested are exposed to bankruptcy risk over the FDIC amount - correct answer CDs must be held to maturity When utilizing a Factor (financial intermediary that purchases receivables from a company)to sell your receivables, all could be true except: - you will sell receivables at a discount off of the face amount - they must be sold without recourse back to the selling company - factors can have recourse back to the selling company if customers do not pay - factoring can assist in raising cash for a company - correct answer they must be sold without recourse back to the selling company Financing decisions in a budget are used to construct all of the following pro forma financial statement components EXCEPT: - debt - interest expense - shareholders equity - inventory - correct answer Inventory Examples of fixed assets include which of the following - inventory - treasury bills - forklift - goodwill - correct answer forklift When it comes to Audit Opinions, firms would like - correct answer unqualified The matching principle in regards to accrual accounting is - correct answer recognize the expenses incurred to generate earned revenues Which is NOT a source of cash for a company? - depreciation expense - an increase in accounts receivable - a decrease in inventory - paying your bills later - correct answer an increase in accounts receivables Which of the following is a ratio that is often used by commercial banks to measure a company s leverage and does not include the effect of assets that are difficult to value or are NOT easily converted to cash? - long-term debt to capital - debt to tangible net worth - total liabilities to total assets - cash flow to total debt - correct answer debt to tangible net worth In evaluating alternative capital investments, a company should consider qualitative factors such as: - correct answer corporate strategy A company is experiencing the following long-term trend on a month-over-month basis: Sales are increasing by $100,000, a 15% increase. Accounts receivable are increasing by $5,000, a 1% increase. Accounts payable are increasing by $20,000, a 4% increase. Labor expenses are increasing by $40,000, a 3% increase. With all other income, expenses, long-term assets and liabilities remaining stable, this trend would MOST LIKELY prompt what action by the company? - correct answer repaying short-term debt Company XYZ is a manufacturer of industrial equipment and has enjoyed a large percentage increase in profits from a small increase in revenues. Sales recently plummeted resulting in steep decline in profitability. Which of the following BEST describes the cost structure of the company? - correct answer high operating leverage All of the following are advantages of using traditional financial ratios for analysis EXCEPT: - they can easily be computed from the information found in publicly available financial reports - they usually reflect accounting rather than economic values - they can be used to view historical trends and availability over time - they allow comparisons to be made between like companies - correct answer they usually reflect accounting rather than economic values Which of the following are important uses of variance analysis in comparing actual cash flows with projected cash flows? I. Identifying unanticipated changes in inventory II. Enhancing short-term investment income III. Validating a capital budget IV. Identifying delays in accounts receivable collections - correct answer I and IV only Company ABC is a restaurant chain that has enjoyed a surge in customers dining with not much of a profitability increase in the last couple of years. Following a bad restaurant review, customer traffic deteriorated with not much change in profitability. Which of the following BEST describes the cost structure of the company? - correct answer Low operating leverage Using the info below what is the Days Inventory (DI)? Annual Revenue $158,000.00 Annual Cost of Goods Sold $92,400.00