BMAL 590 BUSINESS FINANCE LATEST UPDATE QUESTIONS WITH COMPLETE SOLUTIONS
0 view 0 purchase
Course
BMAL 590 BUSINESS FINANCE
Institution
BMAL 590 BUSINESS FINANCE
A company's balance sheet shows the value of assets, liabilities, and stockholders' equity - CORRECT ANSWER At a specific point in time
On a balance sheet, retained earnings are not "unspent cash" because - CORRECT ANSWER They have been used to finance the firm's assets
For bo...
BMAL 590 BUSINESS FINANCE 2024-2025 LATEST
UPDATE QUESTIONS WITH COMPLETE SOLUTIONS
A company's balance sheet shows the value of assets, liabilities, and stockholders'
equity - CORRECT ANSWER At a specific point in time
On a balance sheet, retained earnings are not "unspent cash" because - CORRECT
ANSWER They have been used to finance the firm's assets
For both managers and external financial analysts, ________ is the single most important
accounting number found on the income statement - CORRECT ANSWER Net
income (net profit after tax)
Earnings per share (EPS) is calculated by - CORRECT ANSWER Dividing earnings
available for common stockholders by the number of shares of common stock
outstanding
Net working capital - CORRECT ANSWER Is a measure of a firm's overall liquidity
Why is the quick ratio a more appropriate measure of liquidity than the current ratio
for a large-airplane manufacturer? - CORRECT ANSWER It excludes inventory from
the numerator of the ratio because it is difficult to convert inventory to cash and most
sales are made on a credit basis
The one fixed asset that is not depreciated is _________ - CORRECT ANSWER Land
Return on total assets (ROA) is equal to _________ - CORRECT ANSWER All of the
above
When a firm has no "other income," its operating profit and _________ are equal -
CORRECT ANSWER EBIT
, BMAL 590 BUSINESS FINANCE 2024-2025 LATEST
UPDATE QUESTIONS WITH COMPLETE SOLUTIONS
The firm's ________ are primarily interested in ratios that measure the short-term
liquidity of the company and its ability to make principal and interest payments -
CORRECT ANSWER Creditors
When evaluating financial ratios, analysts typically examine a firm's ratio values -
CORRECT ANSWER Compared to the firm's previous years' ratio
_________ ratios would provide the best information regarding total return to common
stockholders - CORRECT ANSWER Profitability
The firm's managers use ratios to _________ - CORRECT ANSWER All of the above
The ________ flows result from debt and equity financing transactions - CORRECT
ANSWER Financing
Which of the following is an inflow of corporate cash? - CORRECT ANSWER
Depreciation charges
The bottom-up method for forecasting sales - CORRECT ANSWER Relies on the
ability of sales personnel to assess future demand, usually without the aid of statistical
models
Following ________ financing strategy takes advantage of short-term interest rates but
also increases refinancing risk. Following ________ financing strategy minimizes the risk
of a liquidity crisis, but generally increases borrowing costs. Following ________
financing strategy results in the use of long-term funding for permanent assets and
short-term financing for temporary or seasonal requirements - CORRECT ANSWER
None of the above
The sustainable growth model gives managers a kind of shorthand projection that ties
together ________ and ________ - CORRECT ANSWER Growth objectives and financial
needs
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TestBankcenter. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
