1. Question: Which short-term financing rate always requires the use of international data?

    A
    Cost of failing to take a cash discount

    B
    Prime rate

    C
    LIBOR

    D
    Effective rate

    E
    Effective rate with compensating balances

    Note: Not available
    1. Report
  2. Question: A company wants to increase its current ratio. Which of the following would help the most?

    A
    Borrowing a long term loan

    B
    Borrowing a short term loan

    C
    Creating more stringent collection policies to decrease accounts receivable

    D
    Using cash to pay down accounts payable

    Note: Not available
    1. Report
  3. Question: Rate of profit (r) is defined as ______.

    A
    r=(surplus-value)/(fixed assets)

    B
    r=(surplus+value)/(capital invested)

    C
    r=(surplus+value)/(fixed assets)

    D
    r=(surplus-value)/(capital invested)

    Note: Not available
    1. Report
  4. Question: Which of the following is not a financial intermediary?

    A
    Commercial banks

    B
    Credit unions

    C
    Insurance companies

    D
    Credit card companies

    E
    Pension funds

    Note: Not available
    1. Report
  5. Question: Which is an example of a variable cost?

    A
    Management salaries

    B
    Utilities

    C
    Property taxes

    D
    Raw material

    E
    Depreciation

    Note: Not available
    1. Report
  6. Question: Insider trading _____.

    A
    is permitted by the SEC as long as the information becomes public within 30 days

    B
    is a victimless crime as no one suffers an economic loss

    C
    serves no beneficial or economic purpose

    D
    is not legal under any circumstances

    E
    is not illegal as long as the person using the information obtained it from someone else

    Note: Not available
    1. Report
  7. Question: If a firm has $100 in inventories, a current ratio equal to 1.2, and a quick ratio equal to 1.1, what is the firm's Net Working Capital?

    A
    $0

    B
    $100

    C
    $200

    D
    $1,000

    E
    $1,200

    Note: Not available
    1. Report
  8. Question: Which of these items would be accounted for as an expense?

    A
    Repayment of a bank loan

    B
    Dividends to stockholders

    C
    Purchase of land

    D
    Payment of the current period's rent

    Note: Not available
    1. Report
  9. Question: Which of the following inventory methods will always produce the same results under both a periodic and a perpetual system?

    A
    FIFO

    B
    LIFO

    C
    Average

    D
    All of these

    Note: Not available
    1. Report
  10. Question: Which of the following does the cash flow cycle measure?

    A
    The time between purchase of raw materials and collection of cash

    B
    The time it takes to invest liquid funds

    C
    The time it takes for a check to get cleared in the bank

    D
    The maturity date of corporate bonds

    E
    The time between offering a marketable security and receiving funds from sale of one

    Note: Not available
    1. Report
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