Q1: Normally, permanent current assets must be sponsor by:A. Irreversible funds.B. Temporary funds.C. Obtained funds.D. Internally generated funds.

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Correct answer: A. Long-term funds.

Q2: an aggressive, risk-oriented firm will likely:A. Loaned long-term and carry low levels that liquidity.B. Borrow short-term and also carry low levels the liquidity.C. Lend long-term and also carry high levels of liquidity.D. Borrow short-term and carry high level of liquidity.Correct answer: B. Loaned short-term and carry short levels of liquidity.

Q3: The principle of a self-liquidating asset implies that:A. The working capital associated with a product will be liquidated within a one-year period.B. Every the product will be sold, receivables collected, and also bills paid over the time period specifiedC. Assets connected with the production of a product will certainly be liquidated end the amortized lthe assets. Ife of

D. Self-liquidating assets will certainly be financed by long-term sources the capital.Correct answer: B. All the product will be sold, receivables collected, antime duration specified. D bills paid end the

Q4: when actual sales are higher than prediction sales:

A. Inventory will increase.B. Manufacturing schedules could have to it is in revised downward.C. Account receivable will decrease.D. Inventory will decrease and also accounts receivable will increase.Correct answer: D. Inventory will decrease and also accounts receivable will increase.

Q5: The vital initial element in occurring pro forma statements is:A. A cash budget.B. An earnings statement.C. A sales forecastD. A collections schedule.Correct answer: C. A sales forecast

Q6: Ideally, sales projections should be derived from:A. An exterior viewpoint.B. An interior viewpoint.C. Both internal and also external viewpoints.D. The marketing department.Correct answer: C. Both internal and also external viewpoints.

Q7: forced production throughout a planning period will count on the:A. Expense of beginning inventory of products.B. Credit sales throughout the period.

Correct answer: B. Benefit margin and asset turnover

Q11: Maximization the shareholder wealth is a ide in which:A. Increased earnings are of major importance.B. Boosted cash flows space of main importance.C. Boosted dividends are of primary importance.D. Enhanced share price is of primary importance.Correct answer: D. Increased share price is of major importance.

Q12: A coporation, group is not:A. Own by shareholders who gain the privilege of minimal liability.B. Easily divisible in between owners.C. A different legal entity through perpetual life.D. A different legal reality with minimal life.Correct answer: D. A separate legal entity with restricted life.Q13: desired share dividend ____ earnings accessible to typical shareholders.A. IncreaseB. DecreaseC. Due no effectD. Not sufficient information come tellCorrect answer: B. Decrease

Q14: once a corporation provides the financial markets to raise new funds, the sale of securities is made in the:

A. Major market.B. Second market.C. On-line market.D. 3rd market.Correct answer: A. Major market.

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Q15: In order come estimate production requirements, we:A. Add beginning inventory to projected sales in units and subtract preferred ending inventory.B. Include projected sales in units to wanted ending inventory and subtract beginning inventory.C. Include beginning list to preferred ending inventory and divide by two.D. Add beginning perform to desired ending inventory and also subtract projected sales in units.Correct answer: B. Add projected sales in units to preferred ending inventory and also subeginning inventory. Btract