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Foundations of Business Finance (Peregrine) Questions with Correct Answers
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Foundations of Business Finance (Peregrine) Questions with Correct Answers
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Foundations of Business Finance (Peregrine)Questions with Correct Answers
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
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