公司理财英文版题库2教学内容.doc

Good is good, but better carries it.精益求精，善益求善。公司理财英文版题库2-CHAPTER2FinancialStatements&CashFlowMultipleChoiceQuestions:I.DEFINITIONSBALANCESHEETb1.Thefinancialstatementshowingafirmsaccountingvalueonaparticulardateisthe:a.incomestatement.b.balancesheet.c.statementofcashflows.d.taxreconciliationstatement.e.shareholdersequitysheet.Difficultylevel:EasyCURRENTASSETSc2.Acurrentassetis:a.anitemcurrentlyownedbythefirm.b.anitemthatthefirmexpectstoownwithinthenextyear.c.anitemcurrentlyownedbythefirmthatwillconverttocashwithinthenext12months.d.theamountofcashonhandthefirmcurrentlyshowsonitsbalancesheet.e.themarketvalueofallitemscurrentlyownedbythefirm.Difficultylevel:EasyLONG-TERMDEBTb3.Thelong-termdebtsofafirmareliabilities:a.thatcomeduewithinthenext12months.b.thatdonotcomedueforatleast12months.c.owedtothefirmssuppliers.d.owedtothefirmsshareholders.e.thefirmexpectstoincurwithinthenext12months.Difficultylevel:EasyNETWORKINGCAPITALe4.Networkingcapitalisdefinedas:a.totalliabilitiesminusshareholdersequity.b.currentliabilitiesminusshareholdersequity.c.fixedassetsminuslong-termliabilities.d.totalassetsminustotalliabilities.e.currentassetsminuscurrentliabilities.Difficultylevel:EasyLIQUIDASSETSd5.A(n)_assetisonewhichcanbequicklyconvertedintocashwithoutsignificantlossinvalue.a.currentb.fixedc.intangibled.liquide.long-termDifficultylevel:EasyINCOMESTATEMENTa6.Thefinancialstatementsummarizingafirmsperformanceoveraperiodoftimeisthe:a.incomestatement.b.balancesheet.c.statementofcashflows.d.taxreconciliationstatement.e.shareholdersequitysheet.Difficultylevel:EasyNONCASHITEMSd7.Noncashitemsreferto:a.thecreditsalesofafirm.b.theaccountspayableofafirm.c.thecostsincurredforthepurchaseofintangiblefixedassets.d.expenseschargedagainstrevenuesthatdonotdirectlyaffectcashflow.e.allaccountsonthebalancesheetotherthancashonhand.Difficultylevel:EasyMARGINALTAXRATESe8.Your_taxrateistheamountoftaxpayableonthenexttaxabledollaryouearn.a.deductibleb.residualc.totald.averagee.marginalDifficultylevel:EasyAVERAGETAXRATESd9.Your_taxratemeasuresthetotaltaxesyoupaydividedbyyourtaxableincome.a.deductibleb.residualc.totald.averagee.marginalDifficultylevel:EasyCASHFLOWFROMOPERATINGACTIVITIESa10._referstothecashflowthatresultsfromthefirmsongoing,normalbusinessactivities.a.Cashflowfromoperatingactivitiesb.Capitalspendingc.Networkingcapitald.Cashflowfromassetse.CashflowtocreditorsDifficultylevel:MediumCASHFLOWFROMINVESTINGb11._referstothechangesinnetcapitalassets.a.Operatingcashflowb.Cashflowfrominvestingc.Networkingcapitald.Cashflowfromassetse.CashflowtocreditorsDifficultylevel:MediumNETWORKINGCAPITALc12._referstothedifferencebetweenafirmscurrentassetsanditscurrentliabilities.a.Operatingcashflowb.Capitalspendingc.Networkingcapitald.Cashflowfromassetse.CashflowtocreditorsDifficultylevel:EasyCASHFLOWOFOPERATIONSd13._referstothenettotalcashflowofthefirmavailablefordistributiontoitscreditorsandstockholders.a.Operatingcashflowb.Capitalspendingc.Networkingcapitald.Cashflowfromoperationse.CashflowtocreditorsCASHFLOWTOCREDITORSe14._referstothefirmsinterestpaymentslessanynetnewborrowing.a.Operatingcashflowb.Capitalspendingc.Networkingcapitald.Cashflowfromshareholderse.CashflowtocreditorsCASHFLOWTOSTOCKHOLDERSe15._referstothefirmsdividendpaymentslessanynetnewequityraised.a.Operatingcashflowb.Capitalspendingc.Networkingcapitald.Cashflowfromcreditorse.CashflowtostockholdersEARNINGSPERSHAREa16.Earningspershareisequalto:a.netincomedividedbythetotalnumberofsharesoutstanding.b.netincomedividedbytheparvalueofthecommonstock.c.grossincomemultipliedbytheparvalueofthecommonstock.d.operatingincomedividedbytheparvalueofthecommonstock.e.netincomedividedbytotalshareholdersequity.DIVIDENDSPERSHAREb17.Dividendspershareisequaltodividendspaid:a.dividedbytheparvalueofcommonstock.b.dividedbythetotalnumberofsharesoutstanding.c.dividedbytotalshareholdersequity.d.multipliedbytheparvalueofthecommonstock.e.multipliedbythetotalnumberofsharesoutstanding.II.CONCEPTSCURRENTASSETSa18.Whichofthefollowingareincludedincurrentassets?I.equipmentII.inventoryIII.accountspayableIV.casha.IIandIVonlyb.IandIIIonlyc.I,II,andIVonlyd.IIIandIVonlye.II,III,andIVonlyCURRENTLIABILITIESb19.Whichofthefollowingareincludedincurrentliabilities?I.notepayabletoasupplierineighteenmonthsII.debtpayabletoamortgagecompanyinninemonthsIII.accountspayabletosuppliersIV.loanpayabletothebankinfourteenmonthsa.IandIIIonlyb.IIandIIIonlyc.IIIandIVonlyd.II,III,andIVonlye.I,II,andIIIonlyBALANCESHEETd20.Anincreaseintotalassets:a. meansthatnetworkingcapitalisalsoincreasing.b. requiresaninvestmentinfixedassets.c. meansthatshareholdersequitymustalsoincrease.d. mustbeoffsetbyanequalincreaseinliabilitiesandshareholdersequity.canonlyoccurwhenafirmhaspositivenetincome.LIQUIDITYc21.Whichoneofthefollowingaccountsisgenerallythemostliquid?a.inventoryb. buildingc. accountsreceivabled. equipmentpatentLIQUIDITYe22.Whichoneofthefollowingstatementsconcerningliquidityiscorrect?a. Ifyousoldanassettoday,itisaliquidasset.b. Ifyoucansellanassetnextyearatapriceequaltoitsactualvalue,theassetishighlyliquid.c. Trademarksandpatentsarehighlyliquid.d. Thelessliquidityafirmhas,thelowertheprobabilitythefirmwillencounterfinancialdifficulties.Balancesheetaccountsarelistedinorderofdecreasingliquidity.LIQUIDITYd23.Liquidityis:a.ameasureoftheuseofdebtinafirmscapitalstructure.b. equaltocurrentassetsminuscurrentliabilities.c. equaltothemarketvalueofafirmstotalassetsminusitscurrentliabilities.d. valuabletoafirmeventhoughliquidassetstendtobelessprofitabletoown.generallyassociatedwithintangibleassets.SHAREHOLDERSEQUITYd24.Whichofthefollowingaccountsareincludedinshareholdersequity?I.interestpaidII.retainedearningsIII.capitalsurplusIV.long-termdebta.IandIIonlyb.IIandIVonlyc.IandIVonlyd.IIandIIIonlye.IandIIIonlyBOOKVALUEb25.Bookvalue:a.isequivalenttomarketvalueforfirmswithfixedassets.b. isbasedonhistoricalcost.c. generallytendstoexceedmarketvaluewhenfixedassetsareincluded.d. ismoreofafinancialthananaccountingvaluation.isadjustedtomarketvaluewheneverthemarketvalueexceedsthestatedbookvalue.MARKETVALUEa26.Whenmakingfinancialdecisionsrelatedtoassets,youshould:a. alwaysconsidermarketvalues.b. placemoreemphasisonbookvaluesthanonmarketvalues.c. relyprimarilyonthevalueofassetsasshownonthebalancesheet.d. placeprimaryemphasisonhistoricalcosts.onlyconsidermarketvaluesiftheyarelessthanbookvalues.INCOMESTATEMENTd27.Asseenonanincomestatement:a. interestisdeductedfromincomeandincreasesthetotaltaxesincurred.b. thetaxrateisappliedtotheearningsbeforeinterestandtaxeswhenthefirmhasbothdepreciationandinterestexpenses.c. depreciationisshownasanexpensebutdoesnotaffectthetaxespayable.d. depreciationreducesboththepretaxincomeandthenetincome.interestexpenseisaddedtoearningsbeforeinterestandtaxestogetpretaxincome.EARNINGSPERSHAREa28.Theearningspersharewill:a.increaseasnetincomeincreases.b. increaseasthenumberofsharesoutstandingincrease.c. decreaseasthetotalrevenueofthefirmincreases.d. increaseasthetaxrateincreases.e. decreaseasthecostsdecrease.DIVIDENDSPERSHAREe29.Dividendspershare:a.increaseasthenetincomeincreasesaslongasthenumberofsharesoutstandingremainsconstant.b. decreaseasthenumberofsharesoutstandingdecrease,allelseconstant.c. areinverselyrelatedtotheearningspershare.d. arebaseduponthedividendrequirementsestablishedbyGenerallyAcceptedAccountingProcedures.areequaltotheamountofnetincomedistributedtoshareholdersdividedbythenumberofsharesoutstanding.REALIZATIONPRINCIPLEb30.AccordingtoGenerallyAcceptedAccountingPrinciples,a. incomeisrecordedbasedonthematchingprinciple.b. incomeisrecordedbasedontherealizationprinciple.c. costsarerecordedbasedontheliquidityprinciple.d. netincomeisrecordedbasedontherealizationprinciple.depreciationisrecordedasitaffectsthecashflowsofafirm.MATCHINGPRINCIPLEc31.AccordingtoGenerallyAcceptedAccountingPrinciples,costsare:a.recordedasincurred.b.recordedwhenpaid.c.matchedwithrevenues.d.matchedwithproductionlevels.e.expensedasmanagementdesires.NONCASHITEMSa32.Depreciation:a.isanoncashexpensethatisrecordedontheincomestatement.b. increasesthenetfixedassetsasshownonthebalancesheet.c. reducesboththenetfixedassetsandthecostsofafirm.d. isanon-cashexpensewhichincreasesthenetoperatingincome.decreasesnetfixedassets,netincome,andoperatingcashflows.MARGINALTAXRATEc33.Whenyouaremakingafinancialdecision,themostrelevanttaxrateisthe_rate.a.averageb. fixedc. marginald. totalvariableOPERATINGCASHFLOWa34.Anincreaseinwhichoneofthefollowingwillcausetheoperatingcashflowtoincrease?a.depreciationb. changeinnetworkingcapitalc. networkingcapitald. taxescostsCHANGEINNETWORKINGCAPITALe35.Afirmstartsitsyearwithapositivenetworkingcapital.Duringtheyear,thefirmacquiresmoreshort-termdebtthanitdoesshort-termassets.Thismeansthat:a.theendingnetworkingcapitalwillbenegative.b.bothaccountsreceivableandinventorydecreasedduringtheyear.c.thebeginningcurrentassetswerelessthanthebeginningcurrentliabilities.d.accountspayableincreasedandinventorydecreasedduringtheyear.e.theendingnetworkingcapitalcanbepositive,negative,orequaltozero.CASHFLOWTOCREDITORSc36.Thecashflowtocreditorsincludesthecash:a. receivedbythefirmwhenpaymentsarepaidtosuppliers.b. outflowofthefirmwhennewdebtisacquired.c.outflowwheninterestispaidonoutstandingdebt.d.inflowwhenaccountspayabledecreases.e.receivedwhenlong-termdebtispaidoff.CASHFLOWTOSTOCKHOLDERSa37.Cashflowtostockholdersmustbepositivewhen:a. thedividendspaidexceedthenetnewequityraised.b. thenetsaleofcommonstockexceedstheamountofdividendspaid.c. noincomeisdistributedbutnewsharesofstockaresold.d. boththecashflowtoassetsandthecashflowtocreditorsarenegative.boththecashflowtoassetsandthecashflowtocreditorsarepositive.BALANCESHEETb38.Whichequalityisthebasisforthebalancesheet?a.FixedAssets=Stockholder'sEquity+CurrentAssetsb.Assets=Liabilities+Stockholder'sEquityc.Assets=CurrentLong-TermDebt+RetainedEarningsd.FixedAssets=Liabilities+Stockholder'sEquitye.Noneoftheabove.BALANCESHEETa39.Assetsarelistedonthebalancesheetinorderof:a.decreasingliquidity.b.decreasingsize.c.increasingsize.d.relativelife.e.Noneoftheabove.DEBTe40.Debtisacontractualobligationthat:a.requiresthepayoutofresidualflowstotheholdersoftheseinstruments.b.requiresarepaymentofastatedamountandinterestovertheperiod.c.allowsthebondholderstosuethefirmifitdefaults.d.BothAandB.e.BothBandC.CARRYINGVALUEa41.Thecarryingvalueorbookvalueofassets:a.isdeterminedunderGAAPandisbasedonthecostoftheasset.b.representsthetruemarketvalueaccordingtoGAAP.c.isalwaysthebestmeasureofthecompany'svaluetoaninvestor.d.isalwayshigherthanthereplacementcostoftheassets.e.Noneoftheabove.GAAPd42.UnderGAAP,thevalueofallthefirm'sassetsarereportedat:a.marketvalue.b.liquidationvalue.c.intrinsicvalue.d.cost.e.Noneoftheabove.INCOMESTATEMENTe43.Whichofthefollowingstatementsconcerningtheincomestatementistrue?a.Itmeasuresperformanceoveraspecificperiodoftime.b.Itdeterminesafter-taxincomeofthefirm.c.Itincludesdeferredtaxes.d.Ittreatsinterestasanexpense.e.Alloftheabove.GAAPINCOMERECOGNITIONb44.Accordinggenerallyacceptedaccountingprinciples(GAAP),revenueisrecognizedasincomewhen:a.acontractissignedtoperformaserviceordeliveragood.b.thetransactioniscompleteandthegoodsorservicesaredelivered.c.paymentisrequested.d.incometaxesarepaid.e.Alloftheabove.OPERATINGCASHFLOWb45.Whichofthefollowingisnotincludedinthecomputationofoperatingcashflow?a.Earningsbeforeinterestandtaxesb.Interestpaidc.Depreciationd.Currenttaxese.Alloftheaboveareincluded.NETCAPITALSPENDINGb46.Netcapitalspendingisequalto:a.netadditionstonetworkingcapital.b.thenetchangeinfixedassets.c.netincomeplusdepreciation.d.totalcashflowtostockholderslessinterestanddividendspaid.e.thechangeintotalassets.CASHFLOWTOSTOCKHOLDERSd47.Cashflowtostockholdersisdefinedas:a.interestpayments.b.repurchasesofequitylesscashdividendspaidplusnewequitysold.c.cashflowfromfinancinglesscashflowtocreditors.d.cashdividendsplusrepurchasesofequityminusnewequityfinancing.e.Noneoftheabove.FREECASHFLOWd48.Freecashflowis:a.withoutcosttothefirm.b.netincomeplustaxes.c.anincreaseinnetworkingcapital.d.cashflowinexcessofthatrequiredtofundprofitablecapitalprojects.e.Noneoftheabove.CASHFLOWd49.Thecashflowofthefirmmustbeequalto:a.cashflowtoequityminuscashflowtodebtholders.b.cashflowtodebtholdersminuscashflowtoequity.c.cashflowtogovernmentspluscashflowtoequity.d.cashflowtoequitypluscashflowtodebtholders.e.Noneoftheabove.STATEMENTOFCASHFLOWSa50.Whichofthefollowingareallcomponentsofthestatementofcashflows?a.Cashflowfromoperatingactivities,cashflowfrominvestingactivities,andcashflowfromfinancingactivitiesb.Cashflowfromoperatingactivities,cashflowfrominvestingactivities,andcashflowfromdivestingactivitiesc.Cashflowfrominternalactivities,cashflowfromexternalactivities,andcashflowfromfinancingactivitiesd.Cashflowfrombrokeringactivities,cashflowfromprofitableactivities,andcashflowfromnon-profitableactivitiese.Noneoftheabove.III.PROBLEMSCURRENTASSETSb51.Afirmhas$300ininventory,$600infixedassets,$200inaccountsreceivables,$100inaccountspayable,and$50incash.Whatistheamountofthecurrentassets?a.$500b.$550c.$600d.$1,150e.$1,200NETWORKINGCAPITALb52.Thetotalassetsare$900,thefixedassetsare$600,long-termdebtis$500,andshort-termdebtis$200.Whatistheamountofnetworkingcapital?a.$0b.$100c.$200d.$300e.$400LIQUIDITYd53.BradsCompanyhasequipmentwithabookvalueof$500thatcouldbesoldtodayata50percentdiscount.Theirinventoryisvaluedat$400andcouldbesoldtoacompetitorforthatamount.Thefirmhas$50incashandcustomersowethem$300.Whatistheaccountingvalueoftheirliquidassets?a.$50b.$350c.$700d.$750e.$1,000BOOKVALUEc54.MarthasEnterprisesspent$2,400topurchaseequipmentthreeyearsago.Thisequipmentiscurrentlyvaluedat$1,800ontodaysbalancesheetbutcouldactuallybesoldf