MIE 201 Review Exam 5
If the owners' equity in Harper's Forklifts is $200,000 and its liabilities are $80,000, the assets of the company amount to....
$280,000
If the dividend of a stock is $40 and its price is $8 then its dividend yield is
$5
The rise of _____ has helped investors who want to buy and sell stocks and bonds themselves at low costs. a. insurance problems b. online brokerage firms c. savings accounts d. local banks e. mutual funds
B
Capital in excess of par is the difference between a stock's par value and its a. offering price b. prime rate c. coupon rate d. retained earnings
A
Managing short-term assets and liabilities is sometimes called a. working capital management b. fixed asset management c. cost accounting d. fixed capital management
A
The ______ is considered the guardian of the American financial system a. Federal Reserve Board b. Federal Deposit Insurance Corporation c. U.S. Treasury d. World Bank
A
The prime rate is the a. interest rates that commercial banks charge their best customers for short-term loans b. highest rate of interest that commercial banks in the country can charge their customers c. dividend paid out per share divided by the market price of the stock d. rate of interest offered on U.S. Treasury bills
A
What are considered the largest and oldest of all financial institutions? a. commercial banks b. savings and loans c. credit unions d. mutual savings banks
A
Companies performing banking functions that are not regulated by banking regulators are practicing _______ banking. a. sub-prime b. shadow c. mortgage d. recency
B
Douglas Cranes purchased earth-moving equipment worth $169,999 on credit. On the balance sheet, this purchase will be shown as a(n) a. accounts receivable b. accounts payable c. accrued revenue d. deferred revenue
B
If the Federal Reserve Board wants to increase the money supply and the economic activity, it is likely to a. raise discount rates for banking institutions b. buy government securities from large banks c. increase reserve requirements for banking institutions d. restrict credit controls
B
Natalie is an accountant whose primary job responsibilities involve analyzing fraudulent entries in financial statements and rooting out evidence of "cooked books" for federal agencies. According to this information, Natalie is most likely to be a(n) _____ accountant. a. fund b. forensic c. project d. environmental
B
A company's heavy equipment, automobiles, and furniture are a. junk bonds b. current assets c. fixed assets d. retained earnings
C
Jennifer liquidated her catering business and was left with $20,000 after selling all the assets and settling the liabilities. In this case, the amount of $20,000 represents the? a. assets b. net income c. owners' equity d. profit margin
C
Potential investors study the financial statements in a company's annual report to a. determine the company's authority over product pricing and promotion b. assess the ability to repay customer loans quickly with cash generates from sales c. determine whether the returns from the firm compare favorably with other similar companies d. establish reasonable expectations for salary, pensions, and other benefit requests
C
Sean, the manager at Shield Corp., wants a quick snapshot of his company before he goes to his lunch meeting. In this case, which of the following financial statements is Sean most likely to use? a. dividend report b. statement of cash flows c. balance sheet d. income statement
C
U.S. Treasury Bills are a. marketable securities issued by the U.S. government to fund small businesses b. a written promise from one company to another to pay a specific amount of money c. short-term debt obligations the U.S. government sells to raise money d. debt instruments that larger companies sell to raise long-term funds
C
What follows 30 companies to determine whether the stock market has gone up or down? a. NASDAQ b. NYSE c. The Dow Jones Industrial Average d. Standard and Poor's
C
Which of the following are current liabilities? a. investments b. inventories c. accrued salaries d. account receivables
C
Which of the following statements is true of a debit card? a. It offers a purchase grace period b. it provides a hard paper trail c. it decreases teller transactions d. it allows one to promise to pay at a later date
C
Which of the following statements is true of credit cards? a. credit cards act like checks b. The use of a credit card results in a direct, immediate, electronic payment, from the cardholder's checking account to a merchant or other party c. The institution that issues the credit card guarantees payment of a credit charge to merchants d. Card issuers do not levy any transaction fees on merchants for performing the credit check of the card holders
C
If Adana borrows $10,000 to start her own business and pays the lender a sum of $14,000, the $10,000 represents the a. trade credit b. discount c. collateral d. principal
D
Sigma Corp. has recently received patent rights for its new application in the software industry. On the balance sheet, the patent rights received by Sigma Corp, are a a. return on asset b. current asset c. liquid asset d. fixed asset
D
The four basic tools, which the federal reserve uses to fine-tune money growth, are reserve requirements, discount rates, credit controls, and a. commercial banks b. exchange rates c. credit unions d. open market operations
D
What is the effect when the Federal Reserve Board raises the discount rate to banking institutions? a. the money supply in the economy increases b. the interest rates remain unaffected c. economic activity remains the same d. economic activity slows down
D
