财务管理基础(英文版)

财务管理基础英文版选择题 -

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) short-term securities

C) securities such as common stock

D) none of the above

Feedback: The money markets are concerned with short-term 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 common form of business organization in the U.S.

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 decision-making

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) Income Statement

D) Statement of Cash Flows

Feedback: The required statements include the income 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 firm's operating results over a period of time.

A) Income Statement

B) Statement of Cash Flows

C) Balance Sheet

D) None of the above

Feedback: The Income Statement represents a moving picture of a firm's revenues and expenses.

3 CORRECT

All of the following except one are tax-deductible expenses. C

A) interest expense

B) depreciation

C) common stock dividends

D) income taxes

Feedback: Common stock dividends are not tax deductible to a firm.

4 CORRECT

All of the following are non-operating 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) common stock payments

C) interest payments

D) royalties

Feedback: Bondholders are typically paid interest semi-annually.

6 CORRECT

The ratio of net income to common 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) income 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

Short-term financing for a business firm includes: B

A) bonds

B) accounts payable

C) stockholder's equity

D) mortgages

Feedback: The other three answers represent long-term financing.

第三章

Trend analysis allows a firm to compare 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 long-term perspective. As a security analyst and a portfolio manager with Oppenheimer Capital, Dick Glasebrook spoke to a Senior Finance Managers ’ Meeting at the Boeing Company on May 4, 1999. He said it is one thing to compare a firm ’ s performance against competitors within the same industry. But investors are not limited to specific industries. In fact, investors seek to diversify their investments across many different industries. So management should also compare performance to any well run company--both in and outside of their industry.

2

Ratio analysis allows a firm to compare 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 long-term perspective. As a security analyst and a portfolio manager with Oppenheimer Capital, Dick Glasebrook spoke to a Senior Finance Managers ’ Meeting at the Boeing Company on May 4, 1999. He said it is one thing to compare a firm ’ s performance against competitors within the same industry. But investors are not limited to specific industries. In fact, investors seek to diversify their investments across many different industries. So management should also compare performance to any well run company--both in and outside of their industry.

3

Usually, a firm's suppliers are most interested in its ___D_____ ratios.

A) profitability

B) debt

C) asset utilization

D) liquidity

Feedback: The suppliers are most interested in getting paid, as shown by the liquidity of the firm.

4 CORRECT

__________D_____ would be most interested in a firm's debt utilization ratios.

A) bondholders

B) stockholders

C) short-term creditors

D) Both A and B

Feedback: Debt is indicated by a firm issuing bonds but is also a function of the debt to equity relationship or the degree of financial leverage. Both bond holders and stockholders are interested in this relationship although frof opposing viewpoints.

5 CORRECT

The _______C______ ratio indicates the return firm shareholders are earning.

A) return on assets

B) return on investment

C) return on equity

D) net profit margin

Feedback: The shareholders represent equity, or ownership in the firm.

6 CORRECT

Which of the following is an example of a profitability ratio? C

A) Quick ratio

B) Average collection period

C) Return on equity

D) Times interest earned

Feedback: This is the only profitability ratio that is listed. All profitability ratios have net income in the denominator.

7

Total asset turnover will indicate if there is a problem with the ___C______ ratio.

A) debt to assets

B) times interest earned

C) fixed asset turnover

D) current

Feedback: Fixed asset turnover is part of total asset turnover.

8 CORRECT

All of the following are asset utilization ratios except: D

A) average collection period

B) inventory turnover

C) receivables turnover

D) return on assets

Feedback: Return on assets is a profitability ratio. Any ratio with net income in the denominator is a profitability ratio.

9 CORRECT

If a firm's debt ratio is 55%, this means ____C__ of the firm's assets are financed by equity financing.

A) 55%

B) 50%

C) 45%

D) not enough information to answer question

Feedback: The equity portion plus the debt portion must add up to 100%.

10 CORRECT

All of the following can present problems for ratio analysis except: D

A) inflation

B) inventory accounting methods

C) disinflation

D) all of the above

Feedback: These all may cause problems.

第四章

Planning for future growth is called: C

A) capital budgeting

B) working capital management

C) financial forecasting

D) none of the above

Feedback: This involves looking ahead to the future.

2 INCORRECT

Which one of the following is NOT a tool of financial forecasting? B

A) cash budget

B) capital budget

C) pro forma balance sheet

D) pro forma income statement

Feedback: The other three are all tools used by an analyst.

3 CORRECT

The first step in developing a pro forma income statement is to: A

A) build a sales forecast

B) determine the production schedule

C) determine cost of goods sold

D) none of the above

Feedback: A sales forecast begins the process.

4 INCORRECT

Pro forma statements are _B______ statements.

A) actual

B) projected

C) a previous year's

D) none of the above

Feedback: Pro forma statements are based on estimates or projections.

5 INCORRECT

All of the following compose cost of goods sold except ______D__________.

A) raw material

B) labor

C) overhead

D) all of the above are part of cost of goods sold

Feedback: The cost of good sold involves all three of these items.

6 INCORRECT

Financial managers use the ______B_______ to plan for monthly financing needs.

A) capital budget

B) cash budget

C) pro forma income statement

D) none of the above

Feedback: The cash budget allows for planning cash needs.

7 INCORRECT

The payments that a firm collects from its customers are called _______C________.

A) cash disbursements

B) cash outflows

C) cash receipts

D) none of the above

Feedback: Cash receipts represent cash coming into the firm.

8 INCORRECT

Examples of cash disbursements are all but _________B________.

A) payment for materials purchased

B) collection of accounts receivable

C) payment of dividends

D) payment of taxes

Feedback: The collection of accounts receivable is an example of a cash receipt, not a cash disbursement.

9 CORRECT

In developing the pro forma balance sheet, we get common stock from

__________A_______.

A) the firm's previous balance sheet

B) the firm's cash budget

C) the firm's income statement

D) none of the above

Feedback: Common stock appears on the balance sheet.

10 INCORRECT

The percent of sales method of financial forecasting shows 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 compares the relationship between balance sheet items and sales.

第五章

An example of a semi-variable 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) combined breakeven

Feedback: This is the point where the firm'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 doctor'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 break-even point and high operating expenses.

6 INCORRECT

The __________C__________ is the percentage change in operating income that results from a percentage change in sales.

A) degree of financial leverage

B) breakeven point

C) degree of operating leverage

D) degree of combined 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 income.

A) degree of combined 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 income

B) operating leverage

C) earnings per share

D) breakeven point

Feedback: This combines 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) self-liquidating

C) current

D) permanent current

Feedback: A self-liquidating asset is one that will be sold after a certain amount of time.

3 CORRECT

Fixed assets are usually financed with _______A______ funds.

A) long-term

B) short-term

C) permanent

D) none of the above

Feedback: Fixed assets are by definition long-term assets.

4 INCORRECT

_________B_____ is usually used to finance self-liquidating assets.

A) Long-term financing