FIN 571 Final Exam (1st Set) 57 Questions with ANSWERS

FIN 571 Final Exam (1st Set) 57 Questions with ANSWERS -...

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FIN 571 Final Exam. 1) Occurs when a "follower" receives the benefit of an expenditure made by a "leader" by imitating the leader's behavior. A. free-rider problem B. The Principle of Comparative Advantage C. asymmetric information D. put option 2) Occurs when inaccurate information can falsely exist. A. moral hazard B. The Principle of Valuable Ideas C. free-rider problem D. adverse selection 3) Refers to situations wherein the agent can take unseen actions for personal benefit even though such actions are costly to the principal. A. adverse selection B. moral hazard C. zero-sum game D. The Behavioral Principle 4) The annual report refers to A. a report issued annually by managers to primarily convey information about select working capital ratios. B. the length of time remaining until an asset's maturity. C. a report issued annually by a firm that includes, at a minimum, an income statement, a balance sheet, a statement of cash flows, and accompanying notes. D. the extent to which something can be sold for cash quickly and easily without loss of value. 5) Remaining maturity refers to: A. the length of an asset's life when it is issued. B. a technical accounting term that encompasses the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. C. a report issued annually by a firm that includes, at a minimum, an income statement, a balance sheet, a statement of cash flows, and accompanying notes. D. the amount of time remaining until its maturity. 6) Generally accepted accounting principles (GAAP) refers to A. the length of an asset's life when it is issued. B. a technical accounting term that encompasses the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time .
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C. a report issued annually by a firm that includes, at a minimum, an income statement, a balance sheet, a statement of cash flows, and accompanying notes. D. the extent to which something can be sold for cash quickly and easily without loss of value. 7) Original maturity refers to: A. the length of an asset's life when it is issued. B. a technical accounting term that encompasses the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. C. the price for which something could be bought or sold in a reasonable length of time, where “reasonable length of time” is defined in terms of the item's liquidity. D. the net amount (net book value) for something shown in quarterly accounting statements. 8) The firm's assets in the balance sheet refer to: A. the extent to which something can be sold for cash quickly and easily without loss of value. B. the statement of a firm's financial position at one point in time, including its assets and the claims on those assets by creditors (liabilities) and owners (stockholders' equity). C. the productive resources in the firm's operations
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FIN 571 Final Exam (1st Set) 57 Questions with ANSWERS -...

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