1. )Current assets include all assets expected to be consumed or converted into cash

a. Within one year or more

b. Within one year or less

c. Within the companys operating cycle or one year whichever is less

d. Within the companys operating cycle or one year whichever is more

2.) Which of the following is a current asset?

a. Notes receivable expected to be collected in 36 months

b. A cash fund established to pay for an expansion in 24 hours

c. Trademarks used in day to day business

d. Supplies

3.) One of the principles of Finance is Money has a time value which states that a dollar received today is worth less than a dollar received in the future.

a. True

b. False

4.) How much of each sales dollar is available to cover operating expenses is given by:

a. Cost of goods sold

b. Other revenues and expenses

c. Gross profit

d. Operating income

5.) The cost of making or purchasing inventory that is sold to customers is

a. Cost of goods sold

b. Inventory expenses

c. Gross profit

d. Operating income

6.) What amount of earnings is directly related to the day to day primary business operations?

a. Cost of goods sold

b. Other revenues and expenses

c. Gross profit

d. Operating income

7.) The sale of land for cash would be classified as a cash inflow from an investing activity

a. True

b. False

8.) Principle #2 of Finance Risk-return trade off states that a high level of risk of an investment is caused by a low level of return

a. True

b. False

9.) The primary purpose of the statement of cash flows is to:

a. Provide information about the investing and financing activities during a period

b. Prove that revenues exceed expenses if there is a net income

c. Provide information about the cash receipts and cash payments during a period

d. Facilitate banking relationships

10.) Lending money and collecting the loans are:

a. Operating activities

b. Investing activities

c. Financing activities

d. Non-cash investing and financing activities