Fin Test 1
which of the following is an example of an arbitrage
An investor, seeing that the price of palladium on the metals exchange in two different countries is slightly different, buys on one and sells on the other to make a profit.
Which of the following would be considered a current liability
Accounts payable
Which of the following would be considered a liquidity ratio?
...
which of the following would calculating current assets/current liabilities tell you
...
Company A has current assets of $42 billion and current liabilities of $31 billion. Company B has current assets of $2.7 billion and current liabilities of $1.8 billion. Which of the following statements is correct, based on this information?
Company A is less likely than Company B to have sufficient working capital to meet its short-term needs.
Accounts Payable is a
Current Liability
Why is it possible for a corporation to enter into contracts, acquire assets, incur obligations, and enjoy protection against the seizure of its property?
It is a legally defined, artificial entity that is separate from its owners.
Which of the following is NOT a component of the DuPont
Market to book ratio
A company that produces drugs is preparing a balance sheet. Which of the following would be most likely to be considered a long-term asset on this balance sheet?
Robotic equipment
cash is listed
as a current asset on the balance sheet
Which of the following is a legally defined, artificial entity separate from its owners
corporation
which of the following would appear on an income statement
cost of goods sold
30) Which of the following statements are true?
d) A rise in interest rates causes bond prices to fall.
which of the following for asset to be liquid
easily bought and sold selling and buying price close
Which of the following should be the main objective of the managers of a corporation?
maximize shareholder wealth
Bernstein Co. issued $10,000, 20-year bonds with a coupon rate of 4.5% at par value last year. Since that time, interest rates in the economy have risen, and the yield on similar bonds is 7%. Which of the following would you expect to see happen?
price of bonds would drop