User

Maria Elisa Cruz

Course

Prin Of Finance

Test

Final Exam Part 2

Started

12/18/13 1:14 AM

Submitted

12/18/13 2:59 AM

Status

Completed

Attempt Score

115 out of 125 points

Time Elapsed

1 hour, 44 minutes out of 2 hours.

Instructions

This final exam consist of 25 multiple choice questions and covers the material in chapters 14 through 18. There are five questions from each chapter and the questions are in chapter order. Be sure you are in the correct Chapter when you take the exam.

·         Question 1

5 out of 5 points

 

 

The ability of a firm to meet its short-term debt obligations as they come due is indicated by which of the following ratios:

Answer

 

 

 

Selected Answer:

 

liquidity ratios

Correct Answer:

 

liquidity ratios

 

 

 

 

·         Question 2

5 out of 5 points

 

 

________ evidence of the existence of a problem or outstanding management performance is provided by ratio analysis.

Answer

 

 

 

Selected Answer:

 

Inconclusive

Correct A,,,,,,,,,,,,,,,,,,,,,,,,

 

 

 

 

·         Question 3

5 out of 5 points

 

 

Which one of the following types of ratios indicates the ability to meet short-term obligations to creditors as they come due?

Answer

 

 

 

Selected Answer:

 

liquidity ratios

Correct Answer:

 

liquidity ratios

 

 

 

 

·         Question 4

5 out of 5 points

 

 

Which one of the following ratios indicates the average number of days that sales are outstanding?

Answer

 

 

 

Selected Answer:

 

average collection period

Correct Answer:

 

average collection period

 

 

 

 

·         Question 5

5 out of 5 points

 

 

If a firm’s sale price per unit decreases, the firm’s operating breakeven point will

Answer

 

 

 

Selected Answer:,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

increase

Correct Answer:,,,,,,,,,,,,,,,,,,,,,,,,,

 

increase

 

 

 

 

·         Que,,,,,,,,,,,,,,,,,,,,,,,ts

 

 

Calculation of a firm’s average collection period is the same as calculating the:

Answer

 

 

 

Selected Answer:

 

accounts receivable cycle

Correct Answer:

 

accounts receivable cycle

 

 

 

 

·         Question 7

5 out of 5 points

 

 

The objective of managing current assets and liabilities is to

Answer

 

 

 

Selected Answer:

 

achieve a balance between profitability and risk that contributes to the firm’s value.

Correct Answer:

 

achieve a balance between profitability and risk that contributes to the firm’s value.

 

 

 

 

·         Question 8

5 out of 5 points

 

 

Deposits placed in foreign banks that remain denominated in U.S. dollars are called:

Answer

 

 

 

Selected Answer:

 

Eurodollars

Correct Answer:

 

Eurodollars

 

 

 

 

·         Question 9

5 out of 5 points

 

 

In a perfect world, a firm would prefer to have a

Answer

 

 

 

Selected Answer:

 

negative cash conversion cycle.

Correct Answer:

 

negative cash conversion cycle.

 

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

 

·         Question 10