Finance
acid-test ratio
Current Assets - Stock / Current Liabilities
$230200/$1110000 = .207 or 20.7 %
If a firm pays $230,200 in taxes on $1,110,00 in income that firm's average tax rate is
ordinary income
Income that is earned through the sale of a firm's goods and/or services is known as __________.
net income
What type of income may be distributed to the company's owners or reinvested in the company?
an attractive takeover candidate
When a firm has agency problems, the stock price is often depressed, which makes the firm:
fees of outside auditors
Which of the following is an example of agency cost? a) fees of outside auditors b) labor costs c) sales commission d) raw materials
accounts payable
Which of the following is considered a current liability? a) accts payable b) retained earnings c) long-term debt d) inventories
making financial decisions
Which of the following is one of the primary functions of the financial manager?
The market price of a share of stock is determined by:
investors buying and selling the stock
working capital management
one of the primary tasks of a financial manager is to manage short-term cash needs, which is known as:
maximize shareholder wealth
primary goal of a financial manager
previous years earnings less dividends
retained earnings the sum of
finance
science and art of managing money is known as _____________________.
corporate governance
set of rules, processes, and laws that dictate how firm is controlled, operated, and regulated
financial leverage multiplier
the key ratio linking ROA and ROE in the modified DuPont formula is
maximize shareholder wealth
the primary goal of financial manager is to
controller
A firm's chief accountant that is responsible for all accounting activities is known as the __________.
corporation
A _____ is a form of business organization that is separate legal entity from its owners and has limited liability
statement of stockholders' equity
The 3 main financial statements are the balance sheet, the income statement, and statement of cash flows. However, there is a 4th financial statement know as the:
foreign exchange manager
The manager responsible for monitoring and managing the firm's exposure to loss from currency fluctuations is the:
investors buying and selling stock
The market share of a stock is determined by
capital budgeting
The process of evaluating long-term investment opportunities for the firm, and then determining which ones the firm should invest in is known as:
.74
XYZ corporation has total debt of $255 million and total assets of $600 million. What is XYZ's debt-to-equity ratio ?
unlimited liability
a disadvantage of a partnership is :
20
a firm with an average age of inventory of 18.25 days has an inventory turnover of
credit sales that have not been collected
accounts receivable are: a) credit sales that have not been collected b) credit lines that have been approved but not used c) credit extended to the firm by another companu d) credit that has not been extended yet