taking deposits from companies. helping companies manage their daily cash flows. Question 9 3 out of 3 points The generally accepted accounting principles (GAAP) are Selected Answer: rules and procedures that define how companies are to maintain financial records and prepare financial reports. Answers: rules that outline how a firm can operate ethically. rules on how the firm will be valued in the event of a merger. rules and procedures that define how companies are to maintain financial records and prepare financial reports. rules for how a company can issue stock to raise money. Question 10 3 out of 3 points On the balance sheet, Total liabilities + Total stockholder's equity = Total __________. Selected Answer: Asse ts Correct Answer: Evaluation Method Correct Answer Case Sensitivity Exact Match assets Exact Match asset Exact Match total assets Exact Match total asset Question 11 3 out of 3 points What are the two basic sources of funds for all businesses? Selected Answer: debt and equity
Answers: revenue and expenses hope and change debt and equity cash and inventory Question 12 4 out of 4 points Sectors, Inc., has an EBIT of $8,165,643 and interest expense of $413,177. Its depreciation for the year is $1,721,316. What is its cash coverage ratio? Selected Answer: 23.93 Correct Answer: 23.9 ± 0.5 Question 13 4 out of 4 points Parrino Corporation has announced that its net income for the year ended June 30, 2008, is $1,824,214. The company had an EBITDA of $5,174,366, and its depreciation and amortization expense was equal to $1,241,790. The company's average tax rate is 34 percent. What is the amount of interest expense for the firm? Selected Answer: 1,168,615 Correct Answer: 1,168,615 Answer range +/- 2 (1168613.0 - 1168617.0) Question 14 3 out of 3 points The cost principle states that an asset should be recognized on the balance sheet at Selected Answer: its historical cost. Answers: the market value of the asset. the market value of the asset less the accumulated depreciation on the asset. its historical cost. its historical cost plus any expected revenue on the asset. Question 15 3 out of 3 points
The weakest form of the efficient market hypothesis is known as the _________ form. It holds that all information contained in past prices of a security is reflected in current pricess but there is both public and private information that is not. Selected Answer: wea k Correct Answer: Evaluation Method Correct Answer Case Sensitivity Exact Match weak Exact Match weak form Question 16 4 out of 4 points Tim Dye, the CFO of Blackwell Automotive, Inc., is putting together this year’s financial statements. He has gathered the following information. The firm had a cash balance of $24,205, accounts payable of $154,644, common stock of $300,866, retained earnings of $510,327, inventory of $213,614, goodwill and other assets equal to $78,245, net plant and equipment of $716,076, and short-term notes payable of $15,637. It also has accounts receivable of $141,080 and other current assets of $14,113. How much long-term debt does Blackwell Automotive have?