Businaess Finance

Multiple Choice Questions 1. Profitability and solvency objectives in business argon: a. secondary to the objective of growth b. complementary objectives c. of primary grandness in most businesses. d. generally ignored by open businesses. 2. As a companys prospects dislodge over time, the ratings of its outstanding bonds: a. would operate to reduction if the companys ability to pay the principal and interest increases b. would bleed to minify if the companys ability to pay the principal and interest decreases c. would never change once established d. would tend to decline in a serious recession which negatively impacted the companys prospects for incoming profits 3. Favor sufficient pecuniary leverage way that the: a. preferred sh atomic number 18holders receive more requital per share than other b. company has more accounts receiv fitted than accounts payable c. company is able to pay its short-term debts d. common shareholders receive higher pea g per share than otherwise 4. In preparing a statement of bills flows under the indirect method, a decrease in accounts receivable would be reported or embroild as a (n): a. enthronisation activity b. financing activity c. deduction from net income d. improver to net income 5. In the statement of cash flows, cash remunerative for operating activities would include: a. cash dividends paid b. interest on bonds payable c. repayment of a swear loan d.

obtain of productive assets 6. Which statement is false? Ratios: a. are basically licit relationships b. can be based on any a single financi al statement or several(prenominal) financia! l statements c. are never used in financial statement psycho abstract d. can be used to perform heading analysis 7/8 Pizza Inc. sells uncooked pizzas that can be heated at home and taste delicious. An income statement for a typical month is given below: Sales [ 5,000 pizzas] $45,000 equal: Ingredients $12,000 Direct...If you want to get a full essay, order it on our website: BestEssayCheap.com

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