morv $(3\mathrm{.}5\%)$

Chapter $>$

$\frac{100-0}{b-0}\frac{365}{d}=17-1m$

MULTIPLE CHOICE$-$Choose the one alternative that best completes the statement or answers the question.

An item that may be converted to cash within one year or one operating cycle of the firm is classified as a:

A$)$ current liability.

B$)$ long$-$term asset.

C$)$ current asset.

D$)$ long$-$term liability.

E$)$ None of these answers are correct.

The residual income of the firm belongs to:

A$)$ creditors.

B$)$ preferred shareholders,

C$)$ common shareholders.

D$)$ bondholders.

E$)$ None of these answers are correct.

Book value is the same as

A$)$ stockholders' equity.

B$)$ fixed assets minus long$-$term debt.

C$)$ net worth.

D$)$ current assets minus current debt.

E$)$ None of these answers are correct.

A firm has $$3,500,000$ in its common stock account and $$2,500,000$ in its retained earnings account. The firm issued $100,000$ shares of common stock. What was the original issue price if only one stock issue has ever been sold?

A$)$ $$35$ per share

B$)$ $$25$ per share

C$)$ $$60$ per share

D$)$ Not enough information to tell.

Which of the following factors do not influence the firm's $\frac{P}{E}$ ratio?

A$)$ Past earnings

B$)$ Shares outstanding

C$)$ Volatility in business performance

D$)$ All of the options influence the firm's $\frac{P}{E}$ ratio.

Version $1$