【文章內(nèi)容簡介】 us the relationship between ________D___ and financing needs. A) changes in the level of liabilities B) changes in the level of assets C) changes in debt D) changes in the level of sales Feedback: It pares the relationship between balance sheet items and sales. 第五章 An example of a semivariable cost is: D A) rent B) raw material C) depreciation D) utilities Feedback: The other three represent fixed or variable costs. 2 CORRECT _________A____ is the point at which firm profit is equal to zero. A) breakeven B) operating breakeven C) financial leverage D) bined breakeven Feedback: This is the point where the firm39。s revenues equal its expenses. 3 INCORRECT In breakeven analysis, if fixed costs rise, then the breakeven point will _____B_____. A) fall B) rise C) stay the same D) none of the above Feedback: This implies that a larger quantity will have to be sold in order to break even. 4 INCORRECT In the breakeven formula, Price Variable Cost is called the___C__________. A) breakeven point B) leverage C) contribution margin D) none of the above Feedback: This implies that a larger quantity will have to be sold in order to cover the additional fixed costs and still break even. 5 INCORRECT Which of the following types of firms may operate with high operating leverage? B A) a doctor39。s office B) an auto manufacturing facility C) a mental health clinic D) none of the above would have high operating leverage Feedback: This implies a high breakeven point and high operating expenses. 6 INCORRECT The __________C__________ is the percentage change in operating ine that results from a percentage change in sales. A) degree of financial leverage B) breakeven point C) degree of operating leverage D) degree of bined leverage Feedback: This is called the degree of operating leverage (DOL). 7 CORRECT If interest expenses for a firm rise, we know that firm has taken on more ______A________. A) financial leverage B) operating leverage C) fixed assets D) none of the above Feedback: Financial leverage refers to interest expense on debt. 8 INCORRECT The ________B________ is the percentage change in earnings per share that results from a percentage change in operating ine. A) degree of bined leverage B) degree of financial leverage C) breakeven point D) degree of operating leverage Feedback: This is known as the degree of financial leverage (DFL). 9 INCORRECT Combined leverage is the percentage change in relationship between sales and ______C______. A) operating ine B) operating leverage C) earnings per share D) breakeven point Feedback: This bines operating leverage and financial leverage. 10 INCORRECT A highly leveraged firm is ____B______ risky than its peers. A) less B) more C) the same D) none of the above Feedback: Leverage is equivalent to risk, because it implies a higher level of fixed costs. 第六章 Working capital management involves the financing and management of the __C_____ assets of the firm. A) fixed B) total C) current D) none of the above Feedback: Working capital management deals with the financing and management of current assets. 2 INCORRECT An asset sold at the end of a specified time period is called a ______B_______ asset. A) temporary current B) selfliquidating C) current D) permanent current Feedback: A selfliquidating asset is one that will be sold after a certain amount of time. 3 CORRECT Fixed assets are usually financed with _______A______ funds. A) longterm B) shortterm C) permanent D) none of the above Feedback: Fixed assets are by definition longterm assets. 4 INCORRECT _________B_____ is usually used to finance selfliquidating assets. A) Longterm financing B) Shortterm financing C) Permanent financing D) none of the above Feedback: These are shortterm or temporary assets. 5 INCORRECT Shortterm interest rates, in a normal economy, are generally ____C____ than longterm rates. A) higher B) the same C) lower D) none of the above Feedback: Longterm interest rates are normally higher than shortterm interest rates to pensate for uncertainty or risk. 6 INCORRECT The expectations hypothesis says that _____B____ interest rates are a function of _______ interest rates. A) shortterm。 longterm B) longterm。 shortterm C) shortterm。 shortterm D) none of the above Feedback: This theory says that longterm interest rates reflect the average of shortterm expected rates. 7 INCORRECT Insurance panies would tend to invest in ______C____ securities. A) shortterm B) intermediate term C) longterm D) not enough information to answer Feedback: An insurance pany would prefer longterm securities because they are more conservative or safer. 8 INCORRECT The _________D_____ theory says that investors must be paid a premium to hold longterm securities. A) expectations hypothesis B) time value theory C) segmentation D) liquidity premium Feedback: This is the liquidity premium. 9 INCORRECT Shortterm financing plans with high liquidity have: B A) high return and high risk B) moderate return and moderate risk C) low profit and low risk D) none of the above Feedback: This is known as a middleoftheroad approach. 10 INCORRECT Longterm financing plans with low liquidity have: B A) high return and high risk B) moderate return and moderate risk C) low return and low risk D) none of the above Feedback: This is also known as a middleoftheroad approach.