Question 1

The percentage of the next dollar you earn that must be paid in taxes is referred to as the _____ tax rate.

Accepted Answer

A)  mean
B)  residual
C)  total
D)  average
E)  marginalF) All of the above
G) A) and E)

Question 2

Which one of the following will increase the cash flow from assets, all else equal?

Accepted Answer

A)  decrease in cash flow to stockholders
B)  decrease in operating cash flow
C)  increase in the change in net working capital
D)  decrease in cash flow to creditors
E)  decrease in net capital spendingF) A) and B)
G) A) and C)

Question 3

Which one of the following accounts is the most liquid?

Accepted Answer

A)  inventory
B)  building
C)  accounts receivable
D)  equipment
E)  landF) None of the above
G) A) and B)

Question 4

Which of the following are expenses for accounting purposes but are not operating cash flows for financial purposes?
I.interest expense
II.taxes
III.costs of goods sold
IV.depreciation

Accepted Answer

A)  IV only
B)  II and IV only
C)  I and III only
D)  I and IV only
E)  I, II, and IV onlyF) A) and B)
G) D) and E)

Question 5

Which one of the following must be true if a firm had a negative cash flow from assets?

Accepted Answer

A)  The firm borrowed money.
B)  The firm acquired new fixed assets.
C)  The firm had a net loss for the period.
D)  The firm utilized outside funding.
E)  Newly issued shares of stock were sold.F) None of the above
G) All of the above

Question 6

Assume you are the financial officer of a major firm.The president of the firm has just stated that she wishes to reduce the firm's investment in current assets since those assets provide little, if any, return to the firm.How would you respond to this statement?

Accepted Answer

While it is true that current assets pro...

Question 7

Which one of the following is included in a firm's market value but yet is excluded from the firm's accounting value?

Accepted Answer

A)  real estate investment
B)  good reputation of the company
C)  equipment owned by the firm
D)  money due from a customer
E)  an item held by the firm for future saleF) B) and E)
G) D) and E)

Question 8

The _____ tax rate is equal to total taxes divided by total taxable income.

Accepted Answer

A)  deductible
B)  residual
C)  total
D)  average
E)  marginalF) B) and E)
G) C) and D)

Question 9

What is the operating cash flow for 2011?

Accepted Answer

A)  $1,226
B)  $1,367
C)  $1,644
D)  $1,766
E)  $1,823F) None of the above
G) A) and E)

Question 10

What is the cash flow from assets for 2011?

Accepted Answer

A)  $1,732
B)  $2,247
C)  $2,961
D)  $3,915
E)  $4,267F) D) and E)
G) B) and D)

Question 11

The cash flow of a firm which is available for distribution to the firm's creditors and stockholders is called the:

Accepted Answer

A)  operating cash flow.
B)  net capital spending.
C)  net working capital.
D)  cash flow from assets.
E)  cash flow to stockholders.F) C) and D)
G) B) and C)

Question 12

What is the net capital spending for 2011?

Accepted Answer

A)  $117
B)  $239
C)  $257
D)  $338
E)  $421F) A) and B)
G) C) and E)

Question 13

The tax rates are as shown.Nevada Mining currently has taxable income of $97,800.How much additional tax will the firm owe if taxable income increases by $21,000?

Accepted Answer

A)  $8,080
B)  $8,130
C)  $8,155
D)  $8,170
E)  $8,190F) B) and C)
G) A) and E)

Question 14

Your firm has total assets of $4,900, fixed assets of $3,200, long-term debt of $2,900, and short-term debt of $1,400.What is the amount of net working capital?

Accepted Answer

A)  -$100
B)  $300
C)  $600
D)  $1,700
E)  $1,800F) C) and D)
G) A) and D)

Question 15

At the beginning of the year, a firm had current assets of $121,306 and current liabilities of $124,509.At the end of the year, the current assets were $122,418 and the current liabilities were $103,718.What is the change in net working capital?

Accepted Answer

A)  -$19,679
B)  -$11,503
C)  -$9,387
D)  $1,809
E)  $21,903F) A) and B)
G) A) and C)

Question 16

What is the net working capital for 2011?

Accepted Answer

A)  -$175
B)  $338
C)  $1,262
D)  $1,945
E)  $4,941F) All of the above
G) A) and D)

Question 17

The 2010 balance sheet of Global Tours showed current assets of $1,360 and current liabilities of $940.The 2011 balance sheet showed current assets of $1,640 and current liabilities of $1,140.What was the change in net working capital for 2011?

Accepted Answer

A)  $80
B)  $170
C)  $190
D)  $880
E)  $920F) C) and E)
G) B) and E)

Question 18

What is the amount of net new borrowing for 2011?

Accepted Answer

A)  -$1,812
B)  $-1,738
C)  $240
D)  $662
E)  $850F) C) and D)
G) None of the above

Question 19

Bonner Collision has shareholders' equity of $141,800.The firm owes a total of $126,000 of which 60 percent is payable within the next year.The firm net fixed assets of $161,900.What is the amount of the net working capital?

Accepted Answer

A)  $25,300
B)  $30,300
C)  $75,600
D)  $86,300
E)  $111,500F) B) and C)
G) A) and E)

Exam 2: Corporate Governance

The tax rates are as shown.Nevada Mining currently has taxable income of $97,800.How much additional tax will the firm owe if taxable income increases by $21,000?

Correct Answer
verified

Your firm has total assets of $4,900, fixed assets of $3,200, long-term debt of $2,900, and short-term debt of $1,400.What is the amount of net working capital?

Correct Answer
verified

What is the net working capital for 2011?

Correct Answer
verified

The _____ tax rate is equal to total taxes divided by total taxable income.

Correct Answer
verified

Which of the following are expenses for accounting purposes but are not operating cash flows for financial purposes? I.interest expense II.taxes III.costs of goods sold IV.depreciation

Correct Answer
verified

Which one of the following accounts is the most liquid?

Correct Answer
verified

Which one of the following is included in a firm's market value but yet is excluded from the firm's accounting value?

Correct Answer
verified

The 2010 balance sheet of Global Tours showed current assets of $1,360 and current liabilities of $940.The 2011 balance sheet showed current assets of $1,640 and current liabilities of $1,140.What was the change in net working capital for 2011?

Correct Answer
verified

The percentage of the next dollar you earn that must be paid in taxes is referred to as the _____ tax rate.

Correct Answer
verified

Bonner Collision has shareholders' equity of $141,800.The firm owes a total of $126,000 of which 60 percent is payable within the next year.The firm net fixed assets of $161,900.What is the amount of the net working capital?

Correct Answer
verified

Which one of the following must be true if a firm had a negative cash flow from assets?

Correct Answer
verified

At the beginning of the year, a firm had current assets of $121,306 and current liabilities of $124,509.At the end of the year, the current assets were $122,418 and the current liabilities were $103,718.What is the change in net working capital?

Correct Answer
verified

What is the net capital spending for 2011?

Correct Answer
verified

What is the amount of net new borrowing for 2011?

Correct Answer
verified

Assume you are the financial officer of a major firm.The president of the firm has just stated that she wishes to reduce the firm's investment in current assets since those assets provide little, if any, return to the firm.How would you respond to this statement?

Correct Answer
verified
While it is true that current assets pro...
View Answer

What is the operating cash flow for 2011?

Correct Answer
verified

Which one of the following will increase the cash flow from assets, all else equal?

Correct Answer
verified

The cash flow of a firm which is available for distribution to the firm's creditors and stockholders is called the:

Correct Answer
verified

What is the cash flow from assets for 2011?

Correct Answer
verified

Exam 2: Corporate Governance

The tax rates are as shown.Nevada Mining currently has taxable income of $97,800.How much additional tax will the firm owe if taxable income increases by $21,000?

Correct AnswerverifiedShow Answer

Your firm has total assets of $4,900, fixed assets of $3,200, long-term debt of $2,900, and short-term debt of $1,400.What is the amount of net working capital?

Correct AnswerverifiedShow Answer

What is the net working capital for 2011?

Correct AnswerverifiedShow Answer

The _____ tax rate is equal to total taxes divided by total taxable income.

Correct AnswerverifiedShow Answer

Which of the following are expenses for accounting purposes but are not operating cash flows for financial purposes? I.interest expense II.taxes III.costs of goods sold IV.depreciation

Correct AnswerverifiedShow Answer

Which one of the following accounts is the most liquid?

Correct AnswerverifiedShow Answer

Which one of the following is included in a firm's market value but yet is excluded from the firm's accounting value?

Correct AnswerverifiedShow Answer

The 2010 balance sheet of Global Tours showed current assets of $1,360 and current liabilities of $940.The 2011 balance sheet showed current assets of $1,640 and current liabilities of $1,140.What was the change in net working capital for 2011?

Correct AnswerverifiedShow Answer

The percentage of the next dollar you earn that must be paid in taxes is referred to as the _____ tax rate.

Correct AnswerverifiedShow Answer

Bonner Collision has shareholders' equity of $141,800.The firm owes a total of $126,000 of which 60 percent is payable within the next year.The firm net fixed assets of $161,900.What is the amount of the net working capital?

Correct AnswerverifiedShow Answer

Which one of the following must be true if a firm had a negative cash flow from assets?

Correct AnswerverifiedShow Answer

At the beginning of the year, a firm had current assets of $121,306 and current liabilities of $124,509.At the end of the year, the current assets were $122,418 and the current liabilities were $103,718.What is the change in net working capital?

Correct AnswerverifiedShow Answer

What is the net capital spending for 2011?

Correct AnswerverifiedShow Answer

What is the amount of net new borrowing for 2011?

Correct AnswerverifiedShow Answer

Assume you are the financial officer of a major firm.The president of the firm has just stated that she wishes to reduce the firm's investment in current assets since those assets provide little, if any, return to the firm.How would you respond to this statement?

Correct AnswerverifiedWhile it is true that current assets pro...View AnswerShow Answer

What is the operating cash flow for 2011?

Correct AnswerverifiedShow Answer

Which one of the following will increase the cash flow from assets, all else equal?

Correct AnswerverifiedShow Answer

The cash flow of a firm which is available for distribution to the firm's creditors and stockholders is called the:

Correct AnswerverifiedShow Answer

What is the cash flow from assets for 2011?

Correct AnswerverifiedShow Answer

Correct Answer
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verified
While it is true that current assets pro...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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