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Foundations of Business Finance (Peregrine) Question and answers 2023 verified to pass $17.49   Add to cart

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Foundations of Business Finance (Peregrine) Question and answers 2023 verified to pass

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  • Foundations of Business Finance
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  • Foundations Of Business Finance

Foundations of Business Finance (Peregrine) Question and answers 2023 verified to pass True or false: The one fixed asset that is not depreciated is land because it seldom declines in value. - correct answer True __________ liabilities are those due within one year. - correct answer Cur...

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  • July 26, 2023
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  • 2022/2023
  • Exam (elaborations)
  • Questions & answers
  • Foundations of Business Finance
  • Foundations of Business Finance
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flyhigher329
Foundations of Business Finance
(Peregrine) Question and answers 2023
verified to pass
True or false: The one fixed asset that is not depreciated is land because it seldom
declines in value. - correct answer True

__________ liabilities are those due within one year. - correct answer Current

__________-__________ __________ liabilities are due after more than a year, and
may include bonds, mortgages, and long-term loans. - correct answer Long-term debt

Name the three types of accounts listed as current liabilities on balance sheets. - correct
answer (1) Accounts Payable
(2) Notes Payable
(3) Accrued Expenses

Accounts payable - correct answer The amounts owed for credit purchases by a firm

Notes payable - correct answer Outstanding short-term loans, typically from
commercial banks

Accrued expenses - correct answer Costs that have been incurred by a firm which
have not yet been paid; examples of accruals include taxes owed to the government
and unpaid wages

The __________ __________ section of a balance sheet provides information about
the claims against a firm held by investors who own preferred and common shares. -
correct answer Stockholders' equity

The Stockholders' equity section of the balance sheet is reflected in four types of
accounts. These include __________ __________, __________ __________,
__________-__________-__________ __________ ___________ __________
__________, and __________ __________. - correct answer (1) preferred stock
(2) common stock
(3) paid-in-capital excess of par
(4) retained earnings

__________ __________ shows the total proceeds from the sale of preferred stock. -
correct answer Preferred stock

__________-__________-__________ __________ __________ __________
__________ equals the number of shares outstanding multiplied by the original selling

, price of the shares, net of the par value. - correct answer Paid-in-capital in excess of
par

__________ __________ equals the number of outstanding common shares multiplied
by the par value per share. - correct answer Common stock

__________ __________ (often $1) is an artifact of earlier pre-computer accounting
methods used to track the number of outstanding shares. It has no relation to the actual
value of the shares. - correct answer Par value

__________ __________ are the cumulative total of the earnings that the firm has
reinvested in its assets and operations since its inception. - correct answer Retained
earnings

The combined value of __________ __________ and __________-__________-
__________ equals the proceeds the firm received when it originally sold shares to
investors (including initial public offerings and rights offerings). - correct answer
common stock, paid-in-capital

The __________ __________ entry on a balance sheet records the value of common
shares that a firm currently holds in reserve. - correct answer treasury stock

The __________ __________ __________ __________ provides a summary of what
cash has gone into and out of a firm because of its operations, investments, and
financing activities during a year. It isolates the firm's operating, investment, and
financing cash flows and reconciles them with changes in its cash and marketable
securities during the year. - correct answer statement of cash flows

A firm's total cash flows can be conveniently divided into three categories. These
include __________ flows, __________ flows, and __________ flows. - correct answer
operating, investment, financing

Operating flows - correct answer Cash inflows and outflows directly related to the
production and sale of products or services

Investment flows - correct answer Cash flows associated with the purchase or sale of
fixed assets and business equity

Financing flows - correct answer Cash flows which result from debt and equity
financing transactions

__________ __________ __________ is the amount of cash flow available to investors
- the providers of debt and equity capital. It represents the net amount of cash flow
remaining after the firm has met all operating needs and has made all required
payments on both long-term (fixed) and short-term (current) investments. - correct
answer Free cash flow

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