1. A firm utilizing FIFO inventory accounting would, in calculating gross profits, assume
A) all sales were from current production.
B) all sales were from beginning inventory.
C) sales were from beginning inventory until it was depleted, a
1.A firm has $1,000,000 in its common stock account and $2,500,000 in its paid- in capital
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
1.A company experiencing rapid price increases for its products would take the most
conservative approach by using
A) FIFO accounting
B) LIFO accounting
C ) average cost accounting
D) a or c
2.A decreasing average collection period could be asso
1.A conservative financing plan involves
A) heavy reliance on debt.
B) heavy reliance on equity.
C) high degree of financial leverage.
D) high degree of combined leverage.
2.A firm would be indifferent between financing plans when
A) debt is equ
A financial executive devotes the most time to
Working capital management.
A firm will usually increase the ratio of short-term debt long-term debt when
Cost savings from JIT inventory management include(s)
reduced overhead expenses.
lower inventory financing costs.
all of the above
2. Dun & Bradstreet is known for providing
A) interest rate information to ca
1. A firm has invested in corporate bonds; it may engage in a financial futures contract in
order to protect itself from
A) declining interest rates.
B) rising interest rates.
D) changes in hedging activities.
1.A dollar today is worth more than a dollar to be received in the future because
A) risk of nonpayment in the future.
B) the dollar can be invested today and earn interest.
C) inflation will reduce purchasing power of a future dollar.
D) None o
1. A bond which has a yield to maturity greater than its coupon interest rate will sell for a
A) below par.
B) at par.
C) above par.
D) what is equal to the face value of the bond plus the value of all interest payments
A corporate buy-back, or the repurchasing of shares, is
an example of balance sheet restructuring.
an excellent source of profits when the firm's stock is over-priced.
a method of reducing the debt-to-equity ratio.
all of the abov