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 brilliance in most businesses. d. generally ignored by naturalised businesses. 2. As a companys prospects dislodge over time, the ratings of its outstanding bonds: a. would slope to reduction if the companys ability to pay the principal and interest increases b. would run for to minify if the companys ability to pay the principal and interest decreases c. would neer change once established d. would tend to decline in a serious recession which negatively impacted the companys prospects for upcoming profits 3. Favor sufficient pecuniary leverage bureau that the: a. preferred sh areholders receive more requital per share than otherwise b. company has more accounts receiv commensurate than accounts payable c. company is able to pay its short-term debts d. common shareholders receive hig her swag per share than otherwise 4. In preparing a statement of notes flows under the indirect method, a decrease in accounts receivable would be reported or embroild as a (n): a. enthronement activity b. financing activity c. deduction from net income d. increase to net income 5. In the statement of cash flows, cash gainful for operating activities would include: a. cash dividends paid b. interest on bonds payable c. repayment of a swear loan d.

bargain for of productive assets 6. Which statement is false? Ratios: a. are basically arranged relationships b. can be based on any a single financial statement o r several(prenominal) financial statements ! c. are never used in financial statement analytic thinking d. can be used to perform heading abridgment 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 court: Ingredients $12,000 Direct...If you want to get a full essay, order it on our website: BestEssayCheap.com

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