Chapter 3 part one test and answers

Chapter 3 part one test and answers - 1. The majority of...

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1. The majority of financing for most companies comes from which of the following sources? A. Owners and customers B. Creditors and customers C. Owners and managers D. Creditors and owners 2. Which of the following would not be found listed as a liability on a company's balance sheet? A. Operating lease obligations B. Capital lease obligations C. Bonds payable D. Taxes payable 3. Which of the following is not a criterion for defining a lease as a capital lease? A. Ownership is transferred by the end of the lease agreement. B. The lease contains an option to purchase the asset at a bargain price. C. The present value of the lease payments at the beginning of the lease is 75% or more than the value of the asset. D. The lease term is at least 75% of the economic life of the asset.
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5. Which of the following is true concerning bond covenants? A. Bond covenants are restrictions placed on bondholders to protect rights of equity holders. B.
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This note was uploaded on 02/16/2012 for the course FINA 470 taught by Professor Austin during the Fall '11 term at South Carolina.

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Chapter 3 part one test and answers - 1. The majority of...

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