财务管理基础英文版选择题

精品文档 1欢迎下载 第一章 1 CORRECT Which of the following are microeconomic variables that help define and explain the discipline of finance D A risk and return B capital structure C inflation D all of the above Feedback All of the above are relevant in explaining finance 2 CORRECT One primary macroeconomic variable that helps define and explain the discipline of finance C A capital structure B inflation C technology D risk Feedback Technology is very important in explaining the field of finance 3 CORRECT The money markets deal with B A securities with a life of more than one year B short term securities C securities such as common stock D none of the above Feedback The money markets are concerned with short term securities those with a life less than one year 4 CORRECT The ability of a firm to convert an asset to cash is called A A liquidity B solvency C return D marketability Feedback Liquidity also means how close an asset is to cash 5 CORRECT Early in the history of finance an important issue was A A liquidity B technology C capital structure D financing options 精品文档 2欢迎下载 Feedback Maintaining liquidity was a major concern historically 6 INCORRECT The C is the most common form of business organization in the U S A corporation B partnership C sole proprietorship D none of the above Feedback There are more sole proprietorships than any other form of business organization 7 CORRECT The C has more sales in dollars than any other form of business organization A sole proprietorship B partnership C corporation D none of the above Feedback The corporation is the most important in terms of dollars 8 CORRECT One major disadvantage of the sole proprietorship is B A simplicity of decision making B unlimited liability C low operational costs D none of the above Feedback The owners of a sole proprietorship are personally liable 9 CORRECT The appropriate firm goal in a capitalist society is B A profit maximization B shareholder wealth maximization C social responsibility D none of the above Feedback The goal is to maximize the wealth of shareholders 10 CORRECT The agency problem will occur in a business firm if the goals of C and shareholders do not agree A investors B the public 精品文档 3欢迎下载 C management D none of the above 第二章 Feedback The goals of management may be different from those of shareholders The accounting statements that a firm is required to file include all but one of these B A Balance Sheet B Statement of Accounts Receivable C Income Statement D Statement of Cash Flows Feedback The required statements include the income statement balance sheet and statement of changes in cash flows The statement of changes in owners equity or retained earnings is also required by Generally Accepted Accounting Principles but is not covered in this text 2 CORRECT The A shows the firm s operating results over a period of time A Income Statement B Statement of Cash Flows C Balance Sheet D None of the above Feedback The Income Statement represents a moving picture of a firm s revenues and expenses 3 CORRECT All of the following except one are tax deductible expenses C A interest expense B depreciation C common stock dividends D income taxes Feedback Common stock dividends are not tax deductible to a firm 4 CORRECT All of the following are non operating expenses except B A interest expense B cost of goods sold C preferred stock dividends D taxes Feedback The cost of goods sold is an operating expense 5 CORRECT Bondholders receive C from the business firm 精品文档 4欢迎下载 A preferred dividend payments B common stock payments C interest payments D royalties Feedback Bondholders are typically paid interest semi annually 6 CORRECT The ratio of net income to common shares outstanding is called B A price earnings ratio B earnings per share C dividends per share D none of the above Feedback This is called the earnings per share EPS 7 CORRECT Usually firms with high price earnings ratios are A firms A growth B declining C mature D none of the above Feedback A high p e ratio indicates a firm with strong growth prospects 8 CORRECT One of the limitations of the C is that it is based on historical costs A income statement B statement of cash flows C balance sheet D none of the above Feedback The balance sheet uses historical costs 9 INCORRECT A source of funds is a D A decrease in a current asset B decrease in a current liability C increase in a current liability D a and c above Feedback A decrease in current assets is equivalent to an increase in current liabilities 10 INCORRECT 精品文档 5欢迎下载 Short term financing for a business firm includes B A bonds B accounts payable C stockholder s equity D mortgages Feedback The other three answers represent long term financing 第三章 Trend analysis allows a firm to compare its performance to D A other firms in the industry B other time periods within the firm C other industries D all of the above Feedback Trend analysis gives an analyst a long term perspective As a security analyst and a portfolio manager with Oppenheimer Capital Dick Glasebrook spoke to a Senior Finance Managers Meeting at the Boeing Company on May 4 1999 He said it is one thing to compare a firm s performance against competitors within the same industry But investors are not limited to specific industries In fact investors seek to diversify their investments across many different industries So management should also compare performance to any well run company both in and outside of their industry 2 Ratio analysis allows a firm to compare its performance to D A other firms in the industry B other time periods within the firm C other industries D all of the above Feedback Trend analysis gives an analyst a long term perspective As a security analyst and a portfolio manager with Oppenheimer Capital Dick Glasebrook spoke to a Senior Finance Managers Meeting at the Boeing Company on May 4 1999 He said it is one thing to compare a firm s performance against competitors within the same industry But investors are not limited to specific industries In fact investors seek to diversify their investments across many different industries So management should also compare performance to any well run company both in and outside of their industry 3 Usually a firm s suppliers are most interested in its D ratios A profitability B debt C asset utilization D liquidity 精品文档 6欢迎下载 Feedback The suppliers are most interested in getting paid as shown by the liquidity of the firm 4 CORRECT D would be most interested in a firm s debt utilization ratios A bondholders B stockholders C short term creditors D Both A and B Feedback Debt is indicated by a firm issuing bonds but is also a function of the debt to equity relationship or the degree of financial leverage Both bond holders and stockholders are interested in this relationship although frof opposing viewpoints 5 CORRECT The C ratio indicates the return firm shareholders are earning A return on assets B return on investment C return on equity D net profit margin Feedback The shareholders represent equity or ownership in the firm 6 CORRECT Which of the following is an example of a profitability ratio C A Quick ratio B Average collection period C Return on equity D Times interest earned Feedback This is the only profitability ratio that is listed All profitability ratios have net income in the denominator 7 Total asset turnover will indicate if there is a problem with the C ratio A debt to assets B times interest earned C fixed asset turnover D current Feedback Fixed asset turnover is part of total asset turnover 8 CORRECT 精品文档 7欢迎下载 All of the following are asset utilization ratios except D A average collection period B inventory turnover C receivables turnover D return on assets Feedback Return on assets is a profitability ratio Any ratio with net income in the denominator is a profitability ratio 9 CORRECT If a firm s debt ratio is 55 this means C of the firm s assets are financed by equity financing A 55 B 50 C 45 D not enough information to answer question Feedback The equity portion plus the debt portion must add up to 100 10 CORRECT All of the following can present problems for ratio analysis except D A inflation B inventory accounting methods C disinflation D all of the above Feedback These all may cause problems 第四章 Planning for future growth is called C A capital budgeting B working capital management C financial forecasting D none of the above Feedback This involves looking ahead to the future 2 INCORRECT Which one of the following is NOT a tool of financial forecasting B A cash budget B capital budget C pro forma balance sheet D pro forma income statement Feedback The other three are all tools used by an analyst 精品文档 8欢迎下载 3 CORRECT The first step in developing a pro forma income statement is to A A build a sales forecast B determine the production schedule C determine cost of goods sold D none of the above Feedback A sales forecast begins the process 4 INCORRECT Pro forma statements are B statements A actual B projected C a previous year s D none of the above Feedback Pro forma statements are based on estimates or projections 5 INCORRECT All of the following compose cost of goods sold except D A raw material B labor C overhead D all of the above are part of cost of goods sold Feedback The cost of good sold involves all three of these items 6 INCORRECT Financial managers use the B to plan for monthly financing needs A capital budget B cash budget C pro forma income statement D none of the above Feedback The cash budget allows for planning cash needs 7 INCORRECT The payments that a firm collects from its customers are called C A cash disbursements B cash outflows C cash receipts D none of the above Feedback Cash receipts represent cash coming into the firm 精品文档 9欢迎下载 8 INCORRECT Examples of cash disbursements are all but B A payment for materials purchased B collection of accounts receivable C payment of dividends D payment of taxes Feedback The collection of accounts receivable is an example of a cash receipt not a cash disbursement 9 CORRECT In developing the pro forma balance sheet we get common stock from A A the firm s previous balance sheet B the firm s cash budget C the firm s income statement D none of the above Feedback Common stock appears on the balance sheet 10 INCORRECT The percent of sales method of financial forecasting shows us the relationship between D and financing needs A changes in the level of liabilities B changes in the level of assets C changes in debt D changes in the level of sales Feedback It compares the relationship between balance sheet items and sales 第五章 An example of a semi variable cost is D A rent B raw material C depreciation D utilities Feedback The other three represent fixed or variable costs 2 CORRECT A is the point at which firm profit is equal to zero A breakeven B operating breakeven C financial leverage D combined breakeven 精品文档 10欢迎下载 Feedback This is the point where the firm s revenues equal its expenses 3 INCORRECT In breakeven analysis if fixed costs rise then the breakeven point will B A fall B rise C stay the same D none of the above Feedback This implies that a larger quantity will have to be sold in order to break even 4 INCORRECT In the breakeven formula Price Variable Cost is called the C A breakeven point B leverage C contribution margin D none of the above Feedback This implies that a larger quantity will have to be sold in order to cover the additional fixed costs and still break even 5 INCORRECT Which of the following types of firms may operate with high operating leverage B A a doctor s office B an auto manufacturing facility C a mental health clinic D none of the above would have high operating leverage Feedback This implies a high break even point and high operating expenses 6 INCORRECT The C is the percentage change in operating income that results from a percentage change in sales A degree of financial leverage B breakeven point C degree of operating leverage D degree of combined leverage Feedback This is called the degree of operating leverage DOL 7 CORRECT If interest expenses for a firm rise we know that firm has taken on more 精品文档 11欢迎下载 A A financial leverage B operating leverage C fixed assets D none of the above Feedback Financial leverage refers to interest expense on debt 8 INCORRECT The B is the percentage change in earnings per share that results from a percentage change in operating income A degree of combined leverage B degree of financial leverage C breakeven point D degree of operating leverage Feedback This is known as the degree of financial leverage DFL 9 INCORRECT Combined leverage is the percentage change in relationship between sales and C A operating income B operating leverage C earnings per share D breakeven point Feedback This combines operating leverage and financial leverage 10 INCORRECT A highly leveraged firm is B risky than its peers A less B more C the same D none of the above Feedback Leverage is equivalent to risk because it implies a higher level of fixed costs 第六章 Working capital management involves the financing and management of the C assets of the firm A fixed B total C current D none of the above 精品文档 12欢迎下载 Feedback Working capital management deals with the financing and management of current assets 2 INCORRECT An asset sold at the end of a specified time period is called a B asset A temporary current B self liquidating C current D permanent current Feedback A self liquidating asset is one that will be sold after a certain amount of time 3 CORRECT Fixed assets are usually financed with A funds A long term B short term C permanent D none of the above Feedback Fixed assets are by definition long term assets 4 INCORRECT B is usually used to finance self liquidating assets A Long term financing B Short term financing C Permanent financing D none of the above Feedback These are short term or temporary assets 5 INCORRECT Short term interest rates in a normal economy are generally C than long term rates A higher B the same C lower D none of the above Feedback Long term interest rates are normally higher than short term interest rates to compensate for uncertainty or risk 6 INCORRECT The expectations hypothesis says that B interest rates are a function of interest rates 精品文档 13欢迎下载 A short term long term B long term short term C short term short term D none of the above Feedback This theory says that long term interest rates reflect the average of short term expected rates 7 INCORRECT Insurance companies would tend to invest in C securities A short term B intermediate term C long term D not enough information to answer Feedback An insurance company would prefer long term securities because they are more conservative or safer 8 INCORRECT The D theory says that investors must be paid a premium to hold long term securities A expectations hypothesis B time value theory C segmentation D liquidity premium Feedback This is the liquidity premium 9 INCORRECT Short term financing plans with high liquidity have B A high return and high risk B moderate return and moderate risk C low profit and low risk D none of the above Feedback This is known as a middle of the road approach 10 INCORRECT Long term financing plans with low liquidity have B A high return and high risk B moderate return and moderate risk C low return and low risk D none of the above Feedback This is also known as a middle of the road approach 第七章 精品文档 14欢迎下载 The transaction motive for holding cash is for B A a safety cushion B daily operating requirements C compensating balance requirements D none of the above Feedback This is money for everyday transactions 2 CORRECT Which of the following motives for holding cash is required by the bank before loaning money A A compensating balance motive B transactions motive C precautionary motive D none of the above Feedback This can be considered a form of collateral 3 INCORRECT The difference between the cash balance on the firm s books and the balance shown on the bank s books is called B A the compensating balance B float C a safety cushion D none of the above Feedback Float implies that it takes time for checks to clear 4 CORRECT Electronic funds transfer has A the use of float A reduced B increased C had no effect on D none of the above Feedback Electronic funds transfer EFT has moved cash more quickly and reduced float 5 INCORRECT The most utilized marketable security by most firms is the D A Treasury bond B Agency security C Certificate of Deposit D Treasury bill Feedback Treasury bills T Bills are very safe popular investments 精品文档 15欢迎下载 6 INCORRECT Of the following marketable securities which are guaranteed by the Federal government D A agency securities B negotiable certificates of deposit C banker s acceptances D none of the above Feedback None of these are backed by the government 7 INCORRECT The 5 C s of credit include D A conditions B collateral C character D all of the above Feedback The other two C s of credit are capacity and capital 8 INCORRECT B The use of safety stock by a firm will A reduce inventory costs B increase inventory costs C have no effect on inventory costs D none of the above Feedback Safety stock is extra inventory a firm keeps in case of unforseen circumstances 9 INCORRECT All of these factors are used in credit policy administration except C A credit standards B terms of trade C dollar amount of receivables D collection policy Feedback The other three choices are the primary policy variables to consider 10 CORRECT Firms aim to hold A cash balances since cash is a non interest earning asset A low B average C high D none of the above 精品文档 16欢迎下载 Feedback A firm does not want to keep too much cash on hand because it will lose interest by not keeping the money in a bank 第八章 The largest provider of short term credit for a business is B A banking organizations B suppliers to the firm C commercial paper D Eurodollars Feedback This is also known as trade credit 2 INCORRECT The number of days until the firm is past due to a supplier is called the