哈工大选修课financial management答案

哈工大 2012 年 Autumn 季学期

Financial Management Examination Paper

ⅠCHOICE QUESTIONS: Question 1-40, 1.5 marks each, 60 marks total

1. Which of the following types of decision makers use accounting information to make business decisions?

A) Investors B) Creditors

C) Business owners D) All of the above

2. Which of the following accounts is NOT an example of an asset?

A) Accounts receivable B) Cash

C) Building D) Notes payable

3. Which of the following accounts is NOT an example of a liability?

A) Wages Payable B) Notes Payable

C) Accounts Payable D) Accounts Receivable

4. Which of the following accounts is NOT an example of owner's equity?

A) Withdrawals B) Capital

C) Revenue D) Cash

5. Which of the following accounts is an asset?

A) Salary Expense B) Accounts Payable

C) Service Revenue D) Prepaid Expenses

6. Which of the following accounts is a liability?

A) Accounts Payable B) Prepaid Expenses

C) Salary Expense

D) Service Revenue

7. Which of the following accounts is an owner's equity account?

A) Accrued Liability B) Accounts Payable

C) Prepaid Expense D) Capital

8. Which of the following costs would you consider when making a capital budgeting decision?

A) Sunk cost B) Opportunity cost

C) Interest expense D) Fixed overhead cost

9. Which of the following statements is true if the spot price of a commodity at the maturity date of its forward contract is above the forward price?

A) The seller of the contract “wins” and the buyer “loses”.

B) The buyer “wins” and the seller “loses”.

C) Both the buyer and the seller “win”.

D) Both the buyer and the seller “lose”.

10. Which of the following statements regarding the balance sheet is incorrect?

A) The balance sheet provides a snapsho t of the firm’s financial position at a given point in

time.

B) The balance sheet lists the firm’s assets and liabilities.

C) The balance sheet reports stockholders’ equity on the right hand side.

D) The balance sheet reports liabilities on the left hand side.

11. Which of the following statements is false?

A) Finding the present value and compounding are the same.

B) A dollar today and a dollar in one year are not equivalent.

C) If you want to compare or combine cash flows that occur at different points in time, you

first need to convert the cash flows into the same units or move them to the same point in

time.

D) The equivalent value of two cash flows at two different points in time is sometimes

referred to as the time value of money.

12. Money that has been or will be paid regardless of the decision whether or not to proceed with

the project is

A) Cannibalization.

B) Considered as part of the initial investment in the project.

C) An opportunity cost.

D) A sunk cost.

13. Which of the following statements is false?

A) Zero-coupon bonds are also called pure discount bonds.

B) The IRR of an investment opportunity is the discount rate at which the NPV of the

investment opportunity is equal to zero.

C) The yield to maturity for a zero-coupon bond is the return you will earn as an investor

from holding the bond to maturity and receiving the promised face value payment.

D) When prices are quoted in the bond market, they are conventionally quoted in incremen ts

of $1000.

14. When discounting dividends you should use?

A) The weighted average cost of capital.

B) The after tax weighted average cost of capital.

C) The equity cost of capital.

D) The before tax cost of debt.

15. Inflation may turn out to be higher or lower than anticipated, thereb y creating “winners” and

“losers” in lending agreements. Which of the following statements is true if actual inflation exceeds expected inflation?

A) The lender “wins” and the borrower “loses”.

B) The borrower “wins” and the lender “loses”.

C) Both the le nder and the borrower “win”.

D) Both the lender and the borrower “lose”.