【正文】 uppliers are most interested in getting paid, as shown by the liquidity of the firm. 4 CORRECT __________D_____ would be most interested in a firm39。s revenues and expenses. 3 CORRECT All of the following except one are taxdeductible expenses. C A) interest expense B) depreciation C) mon stock dividends D) ine taxes Feedback: Common stock dividends are not tax deductible to a firm. 4 CORRECT All of the following are nonoperating expenses except ______B_______. A) interest expense B) cost of goods sold C) preferred stock dividends D) taxes Feedback: The cost of goods sold is an operating expense. 5 CORRECT Bondholders receive _____C________ from the business firm. A) preferred dividend payments B) mon stock payments C) interest payments D) royalties Feedback: Bondholders are typically paid interest semiannually. 6 CORRECT The ratio of net ine to mon shares outstanding is called _____B_________. A) price/earnings ratio B) earnings per share C) dividends per share D) none of the above Feedback: This is called the earnings per share (EPS). 7 CORRECT Usually, firms with high price/earnings ratios are _____A_______ firms. A) growth B) declining C) mature D) none of the above Feedback: A high p/e ratio indicates a firm with strong growth prospects 8 CORRECT One of the limitations of the _____C_______ is that it is based on historical costs. A) ine statement B) statement of cash flows C) balance sheet D) none of the above Feedback: The balance sheet uses historical costs. 9 INCORRECT A source of funds is a: D A) decrease in a current asset B) decrease in a current liability C) increase in a current liability D) a and c above Feedback: A decrease in current assets is equivalent to an increase in current liabilities. 10 INCORRECT Shortterm financing for a business firm includes: B A) bonds B) accounts payable C) stockholder39。第一章1 CORRECT Which of the following are microeconomic variables that help define and explain the discipline of finance? D A) risk and return B) capital structure C) inflation D) all of the above Feedback: All of the above are relevant in explaining finance. 2 CORRECT One primary macroeconomic variable that helps define and explain the discipline of finance? C A) capital structure B) inflation C) technology D) risk Feedback: Technology is very important in explaining the field of finance. 3 CORRECT The money markets deal with _________. B A) securities with a life of more than one year B) shortterm securities C) securities such as mon stock D) none of the above Feedback: The money markets are concerned with shortterm securities, those with a life less than one year. 4 CORRECT The ability of a firm to convert an asset to cash is called ___A_________. A) liquidity B) solvency C) return D) marketability Feedback: Liquidity also means how close an asset is to cash. 5 CORRECT Early in the history of finance, an important issue was: A A) liquidity B) technology C) capital structure D) financing options Feedback: Maintaining liquidity was a major concern historically. 6 INCORRECT The __________C_________ is the most mon form of business organization in the . A) corporation B) partnership C) sole proprietorship D) none of the above Feedback: There are more sole proprietorships than any other form of business organization. 7 CORRECT The _________C___________ has more sales in dollars than any other form of business organization. A) sole proprietorship B) partnership C) corporation D) none of the above Feedback: The corporation is the most important in terms of dollars. 8 CORRECT One major disadvantage of the sole proprietorship is _____B___________. A) simplicity of decisionmaking B) unlimited liability C) low operational costs D) none of the above Feedback: The owners of a sole proprietorship are personally liable. 9 CORRECT The appropriate firm goal in a capitalist society is ______B__________. A) profit maximization B) shareholder wealth maximization C) social responsibility D) none of the above Feedback: The goal is to maximize the wealth of shareholders. 10 CORRECT The agency problem will occur in a business firm if the goals of ______C______ and shareholders do not agree. A) investors B) the public C) management D) none of the above 第二章Feedback: The goals of management may be different from those of shareholders.The accounting statements that a firm is required to file include all but one of these. B A) Balance Sheet B) Statement of Accounts Receivable C) Ine Statement D) Statement of Cash Flows Feedback: The required statements include the ine statement, balance sheet and statement of changes in cash flows. The statement of changes in owners equity (or retained earnings) is also required by Generally Accepted Accounting Principles but is not covered in this text. 2 CORRECT The _______A________ shows the firm39。s operating results over a period of time. A) Ine Statement B) Statement of Cash Flows C) Balance Sheet D) None of the above Feedback: The Ine Statement represents a moving picture of a firm39。s equity D) mortgages Feedback: The other three answers represent longterm financing.第三章 Trend analysis allows a firm to pare its performance to: D A) other firms in the industry B) other time periods within the firm C) other industries D) all of the above Feedback: Trend analysis gives an analyst a longterm perspective. As a secur