1. The two principal sources of financing for corporations are

a) Debt and accounts payable.

b) Debt and equity.

c) Common equity and preferred equity.

d) Cash and common equity.

2. Matterhorn, Inc. had the following sales for the past six months. Matterhorn collects its credit sales 30% in the month of sale, 60% one month after the sale, and 10% two months after the sale.

What are Matterhorn's total cash receipts for the month of March?

a) $99,500

b) $119,000

c) $150,000

d) $154,500

3. Based on the information in Table 3-1, calculate the after tax cash flow from operations for 2008 (no assets were disposed of during the year, and there was no change in interest payable or taxes payable).

Jones Company

Financial Information

a) $4,300

b) $1,450

c) $5,500

d) $6,250

4. The five basic principles of finance include all of the following EXCEPT

a) Cash flow is what matters.

b) Money has a time value.

c) Risk requires a reward.

d) Incremental profits determine value.

5. A limited partnership provides limited liability to

a) All general partners.

b) Only limited partners responsible for day to day management of the firm.

c) Only to limited partners who do not participate in the management of the business.

d) All partners.

Transcribed Image Text:

January February March April May June Cash Sales $50,000 $70,000 $55,000 $78,000 $80,000 $75,000 Credit Sales $50,000 $110,000 $95,000 $130,000 $105,000 $148,000 Net Income Accounts receivable Accumulated depreciation Common stock Paid-in capital Retained earnings Accounts payable December 2009 $2,000 750 1,000 4,500 7,500 1,500 750 December 2010 $4,000 950 1,500 5000 8500 3,500 750 January February March April May June Cash Sales $50,000 $70,000 $55,000 $78,000 $80,000 $75,000 Credit Sales $50,000 $110,000 $95,000 $130,000 $105,000 $148,000 Net Income Accounts receivable Accumulated depreciation Common stock Paid-in capital Retained earnings Accounts payable December 2009 $2,000 750 1,000 4,500 7,500 1,500 750 December 2010 $4,000 950 1,500 5000 8500 3,500 750

Answer rating: 100% (QA)

1 b Debt and equity 2 d 154500 3 ... View the full answer