Mastersolution

1. In a game of four-handed Hearts, all 52 cards of a standard deck are dealt, so that each player starts each round with 13 cards in a hand. Suppose player A’s hand has three clubs, six diamonds, two hearts, and two spades. What is the relative frequency of spades, rounded to two decimal places, dealt to player A? 0.25 1.5 0.75 0.15 2. A researcher wants to test if the mean annual salary of all lawyers in a city is different than $110,000. The null hypothesis for this example will be that the...

FIN305 Unit 1 Chapter 1-2 Quiz Latest 2018 Question Question 1 1 out of 1 points According to SFAC No. 6, assets can be defined by which of the following? Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past trans-actions or events. Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. R...

Question Question 1 Which of the following is not a typical cash flow under operating activities? Cash inflows from sale of goods or services Cash inflows from sale of property, plant, and equipment Cash outflows to employees Cash outflows to suppliers Question 2 Which of the following was not given as a reason for acquirers paying too much in an acquisition? Overbidding Overuse of conventional financial statements Overoptimistic appraisal of market potential Overestimation of synergies Question...

Question Question 1 Which of the following ratios gives a perspective on risk in the capital structure ? Book value per share Degree of financial leverage Dividend payout Price / earnings ratio Question 2 Which of the following items will be reported on the income statement as part of net income? Prior period adjustment Unrealized decline in market value of investments Foreign currency translation Gain from selling land Question 3 Book value per share may not approximate market value per share b...

Question Question 1 1 out of 1 points Under the Employee Retirement Income Security Act, a company can be liable for its pension plan up to 30% of its net worth 30% of pension liabilites 30% of liabilities 40% of its net worth Question 2 1 out of 1 points All but which of these ratios are considered to be debt ratios? Times interest earned Debt Ratio Fixed charge ratio Current Ratio Question 3 5 out of 5 points Match the five ratios with their formulas. Question a. times interest earned b. fixe...

Question Question 1 10 out of 10 points Listed below are several ratios: a. days' sales in receivables b. accounts receivable turnover c. accounts receivable turnover in days d. days' sales in inventory e. inventory turnover f. inventory turnover in days g. operating cycle h. working capital i. current ratio j. acid-test ratio k. cash ratio l. sales to working capita Match the ratio with the formula. Question __1. Sales Average Working Capital __2. Net Sales Average Gross Receiva...

Question Question 1 1 out of 1 points A horizontal analysis compares each amount with its base amount for a selected base year. True False Question 2 1 out of 1 points Management is a user of financial analysis. Which of the following comments does not represent a fair statement as to the management perspective? Management is not interested in the view of investors. Management is interested in liquidity. Management is interested in the debt position. Management is interested in the financial str...

Question Question 1 1 out of 1 points ________ are normally classified as a current liability on the balance sheet. Prepaid expenses Land Inventories Accounts payable Question 2 1 out of 1 points A quasi-reorganization: may produce a positive balance in retained earnings will restate retained earnings to zero. should appear on the income statement as part of continuing operations requires the approval of a bankruptcy court Question 3 1 out of 1 points If the Investor Company owns 20% of the sto...

Question Question 1 1 out of 1 points According to SFAC No. 6, assets can be defined by which of the following? Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past trans-actions or events. Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. Residual interest on the assets of an entity...

Question Question 1 Limited liability can best be defined as the legal provision that a. shields owners of a corporation from losing more than what they invested in a firm. b. protects bond holders from being sued by other creditors. c. gives holders of preferred stock priority over holders of common stock. d. reduces the exposure of sole proprietorships to law suits. 5 points Saved Question 2 Dividends are a. payments made to stock holders b. payments made to bond holders c. the total profit ea...