11级财务管理专业英语复习题(学生用).doc

11级财务管理专业英语复习资料考试题型：一、短语中英互译(20x1=20分)二、从下列选项中选出最佳答案(20x1=20分)三、计算题（25分）四、段落中英互译（35分）同学们:考试的时候请带上没有存储功能的计算器，试卷上只要是涉及到计算的题里面的数字可能与复习资料上的数字不完全一样，但是计算方法是完全一样的，所以大家要掌握计算方法，考试的时候要自己计算。预祝同学们取得好成绩。Part I terminology translation (1*20 points)Directions: interpret the following terminology in English or Chinese.（范围课后核心词汇）e.g.：1. financial management-译成汉语 2.普通股-译成英语Part II Choice questions (1*20 points) (Please write your answer in the following table) 1. Financial statement does not include ( )A. balance sheet B. income statement C. cash flow statement D. working sheet2. An increase in which one of the following will increase the operating cash flow?A.employee salaries B. office rentC. building maintenance D. equipment depreciation3. The process of planning and managing a firms long-term investments is called: A. working capital management. B. financial depreciation.C. capital budgeting. D. capital structure.4. Cash equivalents include ( )A. time deposits B. inventoriesC. accounts receivable D. prepaid expenses5. The internal rate of return for a project will increase if: A. the initial cost of the project can be reduced. B. the total amount of the cash inflows is reduced.C. the required rate of return is reduced. D. the salvage value of the project is omitted from the analysis.6. Which of the following belongs to current liabilities?( )A. mortgages payable B. prepaid expensesC. notes payable D. bonds payable 7. You spent $500 last week fixing the transmission in your car. Now, the brakes are acting up and you are trying to decide whether to fix them or trade the car in for a newer model. In analyzing the brake situation, the $500 you spent fixing the transmission is a(n) _ cost.A. opportunity B. sunk C. incremental D. fixed8. Which of the following statements are correct concerning diversifiable risks? I. Diversifiable risks can be essentially eliminated by investing in several securities.II. The market rewards investors for diversifiable risk by paying a risk premium.III.Diversifiable risks are generally associated with an individual firm or industry.IV. Beta measures diversifiable risk.A. I and III only B. II and IV onlyC. I and IV only D. II and III only9. Which of the following is a liability account?（ ）A. prepaid insurance B. additional paid-in capitalC. salaries payable D. accumulated depreciation 10. Accountants employed by large corporations may work in the areas of the following except ( )A. product costing and pricing B. budgeting C. internal auditing D. product producing11. A corporations first sale of equity made available to the public is called a(n):（ ）A. share repurchase program. B. private placement.C. initial public offering (IPO). D.seasoned equity offering (SEO).12. Standard deviation measures _ risk.A. total B. nondiversifiable C. unsystematic D. systematic13. ( ) is the value at some future time of a present amount of money, or a series of payments, evaluated at a given interest rate.A. future value B. present value C. intrinsic value D. market value14. Ellesmere Corporation issues 1 million $1 par value bonds. The stated interest rate is 8% per year and the interest is paid twice a year. What is the real interest rate of the bond? ( )A. 6% B.4% C. 10% D. (1+8%/2)2-1 15. Your firm purchased a warehouse for $335,000 six years ago. Four years ago, repairs were made to the building which cost $60,000. The annual taxes on the property are $20,000. The warehouse has a current book value of $268,000 and a market value of $295,000. The warehouse is totally paid for and solely owned by your firm. If the company decides to assign this warehouse to a new project, what value, if any, should be included in the initial cash flow of the project for this building? （ ）A. $268,000 B. $295,000 C. $395,000 D. $515,00016.Which one of the following will decrease the operating cycle? A. paying accounts payable fasterB. discontinuing the discount given for early payment of an accounts receivableC. decreasing the inventory turnover rateD. collecting accounts receivable faster17. Assume that dividends of a common stock will be maintained at D forever, and the required return of the stockholder is r, the par value of the stock is m, the value of the stock is ( )A. m B. m+D C. m+D/r D. D/r18. Which of the following items has the most risk? ( )A. treasury bill B. corporate bond C. preferred stock D. common stock19. ( ) equals the gross profit divided by net sales of a firm.A. gross profit margin B. net profit margin C. return on investment D. return on equity20. ( ) is the ratios that measure a firms ability to meet short-term obligationsA. liquidity ratios B. leverage ratios C. coverage ratios D. activity ratios21.Sensitivity analysis helps you determine the:A. range of possible outcomes given possible ranges for every variable.B. degree to which the net present value reacts to changes in a single variable.C. net present value given the best and the worst possible situations.D. degree to which a project is reliant upon the fixed costs.22. According GAAP revenue is recognized as income when: （ ） A. a contract is signed to perform a service or deliver a good.B. the transaction is complete and the goods or services delivered.C. payment is received.D. income taxes are paid.E. all of the above.23. ( ) is the result of Net Profit Margin total asset turnover (total assets/shareholders equity)A. Return on equity B. return on investment C. current ratio D. quick ratio24. Government tax law adjustment is ( ) to a firm.A. general economic risk B. inflation and deflation risk C. firm-specific risk 25.Which of the following statements concerning the income statement is not true? A. It measures performance over a specific period of time.B. It determines after-tax income of the firm.C. It includes deferred taxes.D. It does not include depreciation.E. it treats interest as an expense.26.Which of the following is not a noncash deduction? A. Depreciation. B. Deferred taxes. C. Interest. D. Two of the above E. All of the above.27.Sasha Corp had an ROA of 10%. Sashas profit margin was 6% on sales of $180. What are total assets? （ ）A.$300 B.$108 C.$48. D$162. 28. Calculate net income based on the following information ( )Sales = $200.00Cost of goods sold = $100.00Depreciation = $18.00Interest paid = $25.00Tax rate = 34%A. $16.50 B. $37.62 C. $34.60 D. $4.60 29.Which of the following is not true? （ ）A. Financial markets can be used to adjust consumption patterns over time.B. Corporate investment decisions have nothing to do with financial markets,C. Financial markets deal with cash flows over time.D. Investment decisions rely on the economic principles of financial markets.E. None of the above.30. ( ) is concerned with the acquisition, financing, and management of assets with some overall goal in mind.A. Financial management B. Profit maximization C. Agency theory D. Social responsibility31. A major disadvantage of the corporate form of organization is the ( ).A. double taxation of dividends B. inability of the firm to raise large sums of additional capitalC. limited liability of shareholders D. limited life of the corporate form.32. Interest paid (earned) on both the original principal borrowed (lent) and previous interest earned is often referred to as ( ).A. present value B. simple interest C. future value D. compound interest33. If the intrinsic value of a share of common stock is less than its market value, which of the following is the most reasonable conclusion? ( )A. The stock has a low level of risk. B. The stock offers a high dividend payout ratio.C. The market is undervaluing the stock. D. The market is overvaluing the stock.34. A 250 face value share of preferred stock, pays a 20 annual dividend and investors require a 7% return on this investment. If the security is currently selling for 276, what is the difference (overvaluation) between its intrinsic and market value (rounded to the nearest whole dollar)? A. approximately 26 B. approximately 10 C. approximately 6 D. approximately 135. Felton Farm Supplies, Inc., has an 8 percent return on total assets of 480,000 and a net profit margin of 6percent. What are its sales? ( )A. 3,750,000 B.640,000 C. 480,000 D. 1,500,00036. A company can improve (lower) its debt-to-total asset ratio by doing which of the following? A. Borrow more. B. Shift short-term to long-term debt. C. Shift long-term to short-term debt. D. issue common stock.37. The DuPont Approach breaks down the earning power on shareholders book value (ROE) as follows: ROE = ( ).A. Net profit margin Total asset turnover Equity multiplierB. Total asset turnover Gross profit margin Debt ratioC. Total asset turnover Net profit marginD. Total asset turnover Gross profit margin Equity multiplier38. Which of the following items concerns financing decision? ( )A. sales forecasting B. bond issuing C. receivables collection D. investment project selection39. Which of the following items is the function of a treasurer? ( )A. cost accounting B. internal control C. capital budgeting D. general ledger40. For financial instruments, ( ) is judged in relation to the ability to sell a significant volume of securities in a short period of time without significant price concession.A. maturity B. marketability C. default D. inflation41. ( ) is the value at some future time of a present amount of money, or a series of payments, evaluated at a given interest rate.A. future value B. present value C. intrinsic value D. market valuePart III: Calculation Questions ( 2*10 points)（注意：要写出计算公式和计算过程，否则不得分；需要用文字描述的问题回答内容要详细，语句正确、完整。）1. Use the financial information for the ABC Corporation to answer problems. ABC Corporation Balance Sheet as of December 31, 2005 (Millions of dollars) Current assets Current liabilities Cash $ 2006 Accounts payable $2325 Accounts receivable 4782 Other current debt 3009 Inventory 3401 Total $5334 Total $10189 Long-term debt 1977 Fixed assets Common stock 5215 Net fixed assets 4346 Retained earnings 2009 Total assets $14535 Total liabilities and stockholders equity $14,535ABC CorporationIncome Statement for Year Ended December 31, 2005(Millions of dollars)Sales $20909Cost of goods sold 14407General, selling, and admin, expenses 3801Depreciation 1225Earnings before interest and taxes $1476Interest expense 639Earnings before taxes $837Taxes (40%) 335Net income $ 502Per share data:Outstanding shares (millions) 1205Earnings per share $0.42Dividends per share $0.00Market price per share $19.25Book value per share $5.99 (1) Prepare a common-size balance sheet for ABC Corporation. What are the largest two expense categories for the company? What percentage of the company is financed by short-term sources of funds? how much and what percentage of the company is financed by long-term sources? (2) Based on statements, calculate the following ratios : Current ratioQuick ratio Accounts receivables turnover ratioDebt ratio Return on assets= Price/earnings ratio(3) What do you think about ABC Corporations financial situation? 2. The most recent financial statements for company CCC are shown here ($):Income StatementBalance SheetSales10,400Current assets11,000Current liabilities10,000Costs6,820Long-term debt12,000Taxable Income3,580Fixed assets27,000Equity16,000Taxes1,253Total38,000Total38,000Net income2,3271） Compute the following ratios: 2） Using Du Pont Identity to compute the ROE 3. You need to have $100000 at the end of 10 years. To accumulate this sum, you have decided to save a certain amount at the end of each next 10 years and deposit it in the bank. The bank pays 8% interest compounded annually for long-term deposit. How much will you have to save each year? (PVIF(8%,10)=0.463, PVIFA(8%,10)=0.671, FVIF(8%,10)=2.159, FVIFA(8%,10)=14.487)4. You expect to deposit the following cash flows at the end of years 1 through 5, 1,000; 4,000; 9,000; 5,000; and 2,000 respectively. Alternatively, you could deposit a single amount today at the beginning of year 1 (end of year 0). How much is the single deposit needed to be today if you can earn 10% compounded annually? (PVIF(10%,1)=0.909,PVIFA(10%,2)=0.826, FVIF(10%,3)=0.751, FVIFA(10%,4 )=0.683, FVIFA(10%,5)=0.621)5. A Microgats Industries bond has a 10% coupon rate and a $1,000 face value. Coupons are paid semiannually, and the bond has 20 years to maturity. If investor required a 12% yield, whats the bonds value? (P/A, 6%, 40)=15.0463 (P/s, 6%, 40) = 0.0972(P/A, 12%, 20)=7.4694 (P/s, 12%, 20) = 0.1037Part IV Translation Topic 1 Financial management is an integrated decision-making process concerned with acquiring, financing, and managing assets to accomplish some overall goal within a business entity. Other names for financial management include managerial finance, corporate finance, and business finance. Making financial decisions is an integral part of all forms and sizes of business organizations from small privately-held firms to large publicly-traded corporations财务管理是一个通过收购、融资和资产管理来完成一些企业总体目标的综合决策过程。财务管理的其他名称包括管理财务、公司理财和商业理财。财务决策对于小型私人公司和大型上市公司来说，都是企业组织形式和规模的重要组成部分。Topic 2A corporation is a legal entity separate from its owners. This means that the corporation can own assets, enter into contracts, sue and be sued. Being a separate legal entity also implies that corporate income is taxable, thus giving rise to double taxation, i.e., corporate tax on profits plus personal tax on after-corporate-tax profits distributed to shareholders (the exception being a full imputation system). There is a separation of ownership (shareholders) and control (managers). Shareholders who hold shares in a corporation own the corporation. Shares represent a claim to corporate profits, which are distributed in the form of dividends, share repurchases, or acquisition payout, (e.g., management buyouts and tender offers). Shareholders have limiter liability. 有限公司是与其所有者分开的一个法人实体。这意味着公司可以拥有资产、签订合同、起诉和被起诉。作为一个独立的法人实体也意味着要对企业收入征税，从而引起双重征税，如企业所得税加上企业税后利润分配给股东的股利所要交的个人所得税。公司制形成了所有权与经营权分离。持有公司股份的股东拥有公司的所有权。所有者享有公司的利润，以股利、股票回购或收购（如管理层收购和要约收购）的形式回馈给所有者。股东承担有限责任。Topic 3The values of most items reported on a firms balance sheet are reported in terms of their accounting book values, which are based on historical cost or original value. The historical cost of an asset is the price paid when the firm acquires the asset. The historical cost of liability is the amount involved when the firm incurs the liability.公司资产负债表报告的价值大部分都是账面价值，账面价值基于历史成本或原始价值。资产的历史成本是公司购买资产时支付的价格。负债的历史成本是公司负有偿还责任时的金额。Firms with complex capital structures have potentially dilutive securities such as convertible securities, options ,and warrants that could potentially dilute earnings per share(EPS). These firms must report both basic and diluted earnings per share figures. The diluted earnings figure per share provides a more conservative earnings estimate by assuming that the total shares of common stock in the denominator include all shares of common stock plus potential shares from the likely future conversing of outstanding convertible securities, stock options, and warrants.复杂的资本结构意味着公司有潜在稀释性证券，如可转换债券、期权和认股权证都会潜在的稀释每股收益。这些公司必须报告基本的和稀释的每股收益。稀释每股收益提供了更为保守的盈利预测，分母中的普通股股数包括所有普通股加上未来可能出现的可转换债券、股票期权和认股权证的潜在股数。Topic 4Equal absolute changes in the numerator and denominator may lead to apparent improvements or deterioration in ratios that do not reflect real changes in performance. Analysts should be aware that a firms managers may undertake year-end transactions, such as the one described above, to make certain ratios appear better following a period of disappointing performance. This process is often called “window dressing” because it makes specific ratios from the financial statements look better than without making such changes.分子和分母相同绝对值的变化，会导致比率明显提高或减少，这个变化的实质不能反映真实情况的。正如以上所述，分析家认为公司的管理者经过一段令人失望的表现后，在进行年终时，计算出更具吸引力的比率。这个过程通常称为账面粉饰。因为从报表中得出的经过加工的比率会比那些原始比率好看。The P/E ratio indicates how many investors are willing to pay per dollar of earnings for shares of the firms common stock. It provides an important indication of how the market perceives the growth and profit opportunities of a firm. High growth firms with strong future profit opportunities w