Maximum leverage ratio - Study guides, Class notes & Summaries

C214 Financial Management WGU 2024 Test Questions With Complete Solutions If accounts receivable increases, what is the impact on CFO? - CFO decreases Are actual taxes paid the same as how on the GAAP income statement? - No. Actual Taxes = IRS Rules Income Statement = GAAP Which decisions require using subjective estimates? - Economic life of a new asset. If there is a 30% change of a recession, what is the probability of expansion? - 70% *The sum of probabilities must equal 1...

Which will be larger: actual taxes payable or accounting income tax expense Accounting tax expense will be higher; actual taxes based on IRS rules will be lower Which cash flow measures the change in long term assets? Cash flow investing Which financial ratios measure "efficiency"? Asset turnover and Fixed Asset turnover Which ratio is the best measure of a firm's ability to pay bills? Quick ratio Which decision requires using subjective estimates? Useful (depreciable) life of a n...

What is Operating Leverage? correct answers extent to which fixed assets and associated fixed costs are utilized in business. Classified as fixed, variable, or semivariable What is Leverage? correct answers use of special force or effects to produce more than normal results from a given course of action. emphasis on employment of fixed cost items to magnify returns at high levels of operations What is financial leverage? correct answers reflects amount of debt used in capital structure of ...

Which will be larger: accrual taxes payable or accounting income tax expense - Accounting tax expense will be higher; actual taxes based on IRS rules will be lower Which financial ratios measure "efficiency"? - Asset turnover and Fixed Asset turnover Which ratio is the best measure of a firm's ability to pay bills? - Quick Ratio Which decision requires using subjective estimates? - Economic life of a new asset What is the yield to maturity on a bond? - The return earned from the p...

Chapter 03 Analyzing Financial Statements Multiple Choice Questions 1. Which of the following refer to ratios that measure the relationship between a firm's liquid (or current) assets and its current liabilities? A. cross-section B. internal-growth C. liquidity D. market value 2. Which type of ratio measures the dollars of current assets available to pay each dollar of current liabilities? A. cross-section B. current C. internal-growth D. quick or acid-...

An opinion of value - ANSWER The appraised value of a property is: assessed value - ANSWER the amount that your local government determines your property to be worth for tax purposes subject property - ANSWER The property that is being appraised. ad valorem - ANSWER according to value Principle of Conformity - ANSWER Maximum value is found when there is a reasonable degree of similarity or homogeneity USPAP (Uniform Standards of Professional Appraisal Practice) - ANSWER Standards ...

Chapter 03 - Financial Planning and Growth Multiple Choice Questions 1. Financial planning is concerned with the basic policy elements of: A. investment decision, decisions on the amount of cash payments to shareholders, and the decision of which investment banker to choose. B. the method of raising capital, investment decisions, and the level of growth to attain. C. investment decisions, degree of financial leverage, and the decision on the amount of cash payments to shareholders. D. degr...

Chapter 03 Analyzing Financial Statements Multiple Choice Questions 1. Which of the following refer to ratios that measure the relationship between a firm's liquid (or current) assets and its current liabilities? A. Cross-section B. Internal growth C. Liquidity D. Market value 2. Which type of ratio measures the dollars of current assets available to pay each dollar of current liabilities? A. Cross-section B. Current C. Internal-growth D. ...

CHAPTER 3 ANALYSIS OF FINANCIAL STATEMENTS Please see the preface for information on the AACSB letter indicators (F, M, etc.) on the subject lines. True/False Easy: We tell our students (1) that to answer some of these questions it is useful to write out the relevant ratio or ratios, then think about how the ratios would change if the accounting data changed, and (2) that sometimes it is useful to make up illustrative data to help see what would happen. (3.1) Ratio analysis F K Answer: a E...

An employer remits State disability taxes withheld from an employees wages to what agency? - correct Answer-Employment Development Department Which act establishes the rights of workers to organize into unions and negotiate contracts? - correct Answer-National Labor Relations Act of 1935 A contractor has had a problem with employees stealing tools and equipment from job sites. When conducting job interviews, may the contractor ask prospective employees about their arrest records? A. It is...