CH 02 HW
The book value of a firm is:
based on historical transactions
Which one of the following is classified as a tangible fixed asset?
computer equipment
which one of the following financials statements summarizes a firms revenue and expenses during a period of time?
income statement
Which one of the following accounts is the most liquid?
Accounts Receivable
Which one of the following is a current liability?
An invoice payable to a supplier in 45 days
Which one of the following is the financial statement that shows the accounting value of a firm's equity as a particular date?
Balance Sheet
Which one of the following determines the standards and procedures with which audited financial statements are prepared?
Generally Accepted Accounting Principles (GAAP)
Which one of the following is classified as a current asset?
Inventory
Which one of the following is most likely to be a fixed cost?
Rent
A positive cash flow to stockholders indicates which of the following with certainty?
The dividends paid exceeded the ent new equity raised
Which one of the following must be true if a firm had a negative cash flow from assets?
The firm obtained external funding
Total income taxes divided by the total taxable income equals the _______________ tax rate
average
The cash flow that is available for distribution to a corporations creditors and stockholders is called the
cash flow from assets
The cash flow related to interest payments less any net new borrowing is called the:
cash flow to creditors
Which one the following describes a noncash item?
expenses that do not consume cash
Cash flow from assets is also known as the firm's:
free cash flow
The ___________ tax rate is the percentage of the last dollar you earned that must be paid in taxes
marginal
The cash flow that results from a company's ongoing, normal business activities called:
operating cash flow