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 richness 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 melt to reduction if the companys ability to pay the principal and interest increases b. would execute 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 future(a) profits 3. Favor sufficient pecuniary leverage convey that the: a. preferred sh arholders receive more requital per share than other than b. company has more accounts receiv satisfactory than accounts payable c. company is able to pay its short-term debts d. common shareholders receive higher cabbage per share than otherwise 4. In preparing a statement of hard cash flows under the indirect method, a decrease in accounts due would be reported or embroild as a (n): a. investment activity b. financing activity c. deduction from net income d. extension to net income 5. In the statement of cash flows, cash stipendiary for operating activities would include: a. cash dividends paid b. interest on bonds payable c. repayment of a swear loan d.

barter for of productive assets 6. Which statement is false? Ratios: a. are basically tenacious relationships b. can be based on any a sing le financial statement or several(prenomina! l) financial statements c. are never used in financial statement synopsis d. can be used to perform heading summary 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 approach: Ingredients $12,000 Direct...If you want to get a full essay, order it on our website: BestEssayCheap.com

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