11-24-2010, 03:21 PM
Which of the following is NOT the step of Percentage of sales to be used in Financial Forecasting?
Select correct option:
Estimate year-by-year Sales Revenue and Expenses
Estimate Levels of Investment Needs required to Meet Estimated Sales
Estimate the Financing Needs
Estimate the retained earnings
Question # 2 of 15 ( Start time: 06:56:39 AM ) Total Marks: 1
A technique that tells us the number of years required to recover our initial cash investment based on the project’s expected cash flows is:
Select correct option:
Pay back period
Internal rate of return
Net present value
Profitability index
Question # 3 of 15 ( Start time: 06:57:11 AM ) Total Marks: 1
Which of the following allows to graphically depicting the timing of the cash flows as well as their nature as either inflows or outflows?
Select correct option:
Cash flow diagram
Cash budget
Cash flow statement
None of the given options
Question # 4 of 15 ( Start time: 06:57:35 AM ) Total Marks: 1
Which of the following would generally have unlimited liability?
Select correct option:
A limited partner in a partnership
A shareholder in a corporation
The owner of a sole proprietorship
A member in a limited liability company (LLC)
Question # 5 of 15 ( Start time: 06:57:57 AM ) Total Marks: 1
Which of the following is NOT true regarding the capital market?
Select correct option:
Where long-term funds can be raised
Money is invested for periods longer than a year
Where TFCs and NIT are exchanged and traded
Where overnight lending & borrowing takes place
Question # 7 of 15 ( Start time: 06:59:27 AM ) Total Marks: 1
Who determine the market price of a share of common stock?
Select correct option:
The board of directors of the firm
The stock exchange on which the stock is listed
The president of the company
Individuals buying and selling the stock
Question # 8 of 15 ( Start time: 07:00:10 AM ) Total Marks: 1
Which of the following techniques would be used for a project that has non–normal cash flows?
Select correct option:
Internal rate of return
Multiple internal rate of return
Modified internal rate of return
Net present value
Question # 9 of 15 ( Start time: 07:01:20 AM ) Total Marks: 1
If we were to increase ABC company cost of equity assumption, what would we expect to happen to the present value of all future cash flows?
Select correct option:
An increase
A decrease
No change
Incomplete information
Question # 10 of 15 ( Start time: 07:02:12 AM ) Total Marks: 1
The current yield on a bond is equal to ______.
Select correct option:
Annual interest divided by the current market price
The yield to maturity
Annual interest divided by the par value
The internal rate of return
Question # 11 of 15 ( Start time: 07:02:40 AM ) Total Marks: 1
Choose the correct statement regarding the calculations of NPV (Net Present Value).
Select correct option:
Exclude sunk costs and include opportunity costs and externalities
Exclude sunk costs and externalities and include opportunity costs
Include sunk costs, opportunity costs, and externalities
Exclude sunk costs and opportunity costs and include externalities
Question # 12 of 15 ( Start time: 07:04:12 AM ) Total Marks: 1
To increase a given future value, the discount rate should be adjusted ________.
Select correct option:
Upward
Downward
First upward and then downward
None of the given options
Question # 13 of 15 ( Start time: 07:05:09 AM ) Total Marks: 1
Which of the following is the main objective of ‘Financial Accounting’?
Select correct option:
Profit maximization
Maximization of shareholders wealth
To collect accurate, systematic, and timely financial data
All of the given options
Question # 14 of 15 ( Start time: 07:05:35 AM ) Total Marks: 1
Which of the following value of the shares changes with investor’s perception about the company’s future and supply and demand situation?
Select correct option:
Par value
Market value
Intrinsic value
Face value
Question # 15 of 15 ( Start time: 07:06:08 AM ) Total Marks: 1
MIRR (discount rate) equates which of the following?
Select correct option:
Future value of cash inflows to the present value of cash outflows
Future value of cash flows to the present value of cash flows
Future value of all cash flows to zero
Present value of all cash flows to zero
Select correct option:
Estimate year-by-year Sales Revenue and Expenses
Estimate Levels of Investment Needs required to Meet Estimated Sales
Estimate the Financing Needs
Estimate the retained earnings
Question # 2 of 15 ( Start time: 06:56:39 AM ) Total Marks: 1
A technique that tells us the number of years required to recover our initial cash investment based on the project’s expected cash flows is:
Select correct option:
Pay back period
Internal rate of return
Net present value
Profitability index
Question # 3 of 15 ( Start time: 06:57:11 AM ) Total Marks: 1
Which of the following allows to graphically depicting the timing of the cash flows as well as their nature as either inflows or outflows?
Select correct option:
Cash flow diagram
Cash budget
Cash flow statement
None of the given options
Question # 4 of 15 ( Start time: 06:57:35 AM ) Total Marks: 1
Which of the following would generally have unlimited liability?
Select correct option:
A limited partner in a partnership
A shareholder in a corporation
The owner of a sole proprietorship
A member in a limited liability company (LLC)
Question # 5 of 15 ( Start time: 06:57:57 AM ) Total Marks: 1
Which of the following is NOT true regarding the capital market?
Select correct option:
Where long-term funds can be raised
Money is invested for periods longer than a year
Where TFCs and NIT are exchanged and traded
Where overnight lending & borrowing takes place
Question # 7 of 15 ( Start time: 06:59:27 AM ) Total Marks: 1
Who determine the market price of a share of common stock?
Select correct option:
The board of directors of the firm
The stock exchange on which the stock is listed
The president of the company
Individuals buying and selling the stock
Question # 8 of 15 ( Start time: 07:00:10 AM ) Total Marks: 1
Which of the following techniques would be used for a project that has non–normal cash flows?
Select correct option:
Internal rate of return
Multiple internal rate of return
Modified internal rate of return
Net present value
Question # 9 of 15 ( Start time: 07:01:20 AM ) Total Marks: 1
If we were to increase ABC company cost of equity assumption, what would we expect to happen to the present value of all future cash flows?
Select correct option:
An increase
A decrease
No change
Incomplete information
Question # 10 of 15 ( Start time: 07:02:12 AM ) Total Marks: 1
The current yield on a bond is equal to ______.
Select correct option:
Annual interest divided by the current market price
The yield to maturity
Annual interest divided by the par value
The internal rate of return
Question # 11 of 15 ( Start time: 07:02:40 AM ) Total Marks: 1
Choose the correct statement regarding the calculations of NPV (Net Present Value).
Select correct option:
Exclude sunk costs and include opportunity costs and externalities
Exclude sunk costs and externalities and include opportunity costs
Include sunk costs, opportunity costs, and externalities
Exclude sunk costs and opportunity costs and include externalities
Question # 12 of 15 ( Start time: 07:04:12 AM ) Total Marks: 1
To increase a given future value, the discount rate should be adjusted ________.
Select correct option:
Upward
Downward
First upward and then downward
None of the given options
Question # 13 of 15 ( Start time: 07:05:09 AM ) Total Marks: 1
Which of the following is the main objective of ‘Financial Accounting’?
Select correct option:
Profit maximization
Maximization of shareholders wealth
To collect accurate, systematic, and timely financial data
All of the given options
Question # 14 of 15 ( Start time: 07:05:35 AM ) Total Marks: 1
Which of the following value of the shares changes with investor’s perception about the company’s future and supply and demand situation?
Select correct option:
Par value
Market value
Intrinsic value
Face value
Question # 15 of 15 ( Start time: 07:06:08 AM ) Total Marks: 1
MIRR (discount rate) equates which of the following?
Select correct option:
Future value of cash inflows to the present value of cash outflows
Future value of cash flows to the present value of cash flows
Future value of all cash flows to zero
Present value of all cash flows to zero