财务管理基础 英文版 选择题

第一章
1 CORRECT
Which of the following are microeconomic variables that help define and explain the discipline of finance? D
A) risk and return
B) capital structure
C) inflation
D) all of the above
Feedback: All of the above are relevant in explaining finance.
2 CORRECT
One primary macroeconomic variable that helps define and explain the discipline of finance? C
A) capital structure
B) inflation
C) technology
D) risk
Feedback: Technology is very important in explaining the field of finance.
3 CORRECT
The money markets deal with _________. B
A) securities with a life of more than one year
B) short-term securities
C) securities such as common stock
D) none of the above
Feedback: The money markets are concerned with short-term securities, those with a life less than one year.
4 CORRECT
The ability of a firm to convert an asset to cash is called ___A_________.
A) liquidity
B) solvency
C) return
D) marketability
Feedback: Liquidity also means how close an asset is to cash.
5 CORRECT
Early in the history of finance, an important issue was: A
A) liquidity
B) technology
C) capital structure
D) financing options
Feedback: Maintaining liquidity was a major concern historically.
6 INCORRECT
The __________C_________ is the most common form of business organization in the U.S.
A) corporation
B) partnership
C) sole proprietorship
D) none of the above
Feedback: There are more sole proprietorships than any other form of business organization.
7 CORRECT
The _________C___________ has more sales in dollars than any other form of business organization.
A) sole proprietorship
B) partnership
C) corporation
D) none of the above
Feedback: The corporation is the most important in terms of dollars.
8 CORRECT
One major disadvantage of the sole proprietorship is _____B___________.
A) simplicity of decision-making
B) unlimited liability
C) low operational costs
D) none of the above
Feedback: The owners of a sole proprietorship are personally liable.
9 CORRECT
The appropriate firm goal in a capitalist society is ______B__________.
A) profit maximization
B) shareholder wealth maximization
C) social responsibility
D) none of the above
Feedback: The goal is to maximize the wealth of shareholders.
10 CORRECT
The agency problem will occur in a business firm if the goals of ______C______ and shareholders do not agree.
A) investors
B) the public
C) management
D) none of the above
第二章
Feedback: The goals of management may be different from those of shareholders.
The accounting statements that a firm is required to file include all but one of these. B
A) Balance Sheet
B) Statement of Accounts Receivable
C) Income Statement
D) Statement of Cash Flows
Feedback: The required statements include the income statement, balance sheet and statement of changes in cash flows. The statement of changes in owners equity (or retained earnings) is also required by Generally Accepted Accounting Principles but is not covered in this text.
2 CORRECT
The _______A________ shows the firm's operating results over a period of time.
A) Income Statement
B) Statement of Cash Flows
C) Balance Sheet
D) None of the above
Feedback: The Income Statement represents a moving picture of a firm's revenues and expenses.
3 CORRECT
All of the following except one are tax-deductible expenses. C
A) interest expense
B) depreciation
C) common stock dividends
D) income taxes
Feedback: Common stock dividends are not tax deductible to a firm.
4 CORRECT
All of the following are non-operating expenses except ______B_______.
A) interest expense
B) cost of goods sold
C) preferred stock dividends
D) taxes
Feedback: The cost of goods sold is an operating expense.
5 CORRECT
Bondholders receive _____C________ from the business firm.
A) preferred dividend payments
B) common stock payments
C) interest payments
D) royalties
Feedback: Bondholders are typically paid interest semi-annually.
6 CORRECT
The ratio of net income to common shares outstanding is called _____B_________.
A) price/earnings ratio
B) earnings per share
C) dividends per share
D) none of the above
Feedback: This is called the earnings per share (EPS).
7 CORRECT
Usually, firms with high price/earnings ratios are _____A_______ firms.
A) growth
B) declining
C) mature
D) none of the above
Feedback: A high p/e ratio indicates a firm with strong growth prospects
8 CORRECT
One of the limitations of the _____C_______ is that it is based on historical costs.
A) income statement
B) statement of cash flows
C) balance sheet
D) none of the above
Feedback: The balance sheet uses historical costs.
9 INCORRECT
A source of funds is a: D
A) decrease in a current asset
B) decrease in a current liability
C) increase in a current liability
D) a and c above
Feedback: A decrease in current assets is equivalent to an increase in current liabilities.
10 INCORRECT
Short-term financing for a business firm includes: B
A) bonds
B) accounts payable
C) stockholder's equity
D) mortgages
Feedback: The other three answers represent long-term financing.
第三章
Trend analysis allows a firm to compare its performance to: D
A) other firms in the industry
B) other time periods within the firm
C) other industries
D) all of the above
Feedback: Trend analysis gives an analyst a long-term perspective. As a security analyst and a portfolio manager with Oppenheimer Capital, Dick Glasebrook spoke to a Senior Finance Managers’ Meeting at the Boeing Company on May 4, 1999. He said it is one thing to compare a
firm’s performance against competitors within t he same industry. But investors are not limited to specific industries. In fact, investors seek to diversify their investments across many different industries. So management should also compare performance to any well run company--both in and outside of their industry.
2
Ratio analysis allows a firm to compare its performance to: D
A) other firms in the industry
B) other time periods within the firm
C) other industries
D) all of the above
Feedback: Trend analysis gives an analyst a long-term perspective. As a security analyst and a portfolio manager with Oppenheimer Capital, Dick Glasebrook spoke to a Senior Finance Managers’ Meeting at the Boeing Company on May 4, 1999. He said it is one thing to compare a firm’s performance against com petitors within the same industry. But investors are not limited to specific industries. In fact, investors seek to diversify their investments across many different industries. So management should also compare performance to any well run company--both in and outside of their industry.
3
Usually, a firm's suppliers are most interested in its ___D_____ ratios.
A) profitability
B) debt
C) asset utilization
D) liquidity
Feedback: The suppliers are most interested in getting paid, as shown by the liquidity of the firm.
4 CORRECT
__________D_____ would be most interested in a firm's debt utilization ratios.
A) bondholders
B) stockholders
C) short-term creditors
D) Both A and B
Feedback: Debt is indicated by a firm issuing bonds but is also a function of the debt to equity relationship or the degree of financial leverage. Both bond holders and stockholders are interested in this relationship although frof opposing viewpoints.
5 CORRECT
The _______C______ ratio indicates the return firm shareholders are earning.
A) return on assets
B) return on investment
C) return on equity
D) net profit margin
Feedback: The shareholders represent equity, or ownership in the firm.
6 CORRECT
Which of the following is an example of a profitability ratio? C
A) Quick ratio
B) Average collection period
C) Return on equity
D) Times interest earned
Feedback: This is the only profitability ratio that is listed. All profitability ratios have net income in the denominator.
7
Total asset turnover will indicate if there is a problem with the ___C______ ratio.
A) debt to assets
B) times interest earned
C) fixed asset turnover
D) current
Feedback: Fixed asset turnover is part of total asset turnover.
8 CORRECT
All of the following are asset utilization ratios except: D
A) average collection period
B) inventory turnover
C) receivables turnover
D) return on assets
Feedback: Return on assets is a profitability ratio. Any ratio with net income in the denominator is a profitability ratio.
9 CORRECT
If a firm's debt ratio is 55%, this means ____C__ of the firm's assets are financed by equity financing.
A) 55%
B) 50%
C) 45%
D) not enough information to answer question
Feedback: The equity portion plus the debt portion must add up to 100%.
10 CORRECT
All of the following can present problems for ratio analysis except: D
A) inflation
B) inventory accounting methods
C) disinflation
D) all of the above
Feedback: These all may cause problems.
第四章
Planning for future growth is called: C
A) capital budgeting
B) working capital management
C) financial forecasting
D) none of the above
Feedback: This involves looking ahead to the future.
2 INCORRECT
Which one of the following is NOT a tool of financial forecasting? B
A) cash budget
B) capital budget
C) pro forma balance sheet
D) pro forma income statement
Feedback: The other three are all tools used by an analyst.
3 CORRECT
The first step in developing a pro forma income statement is to: A
A) build a sales forecast
B) determine the production schedule
C) determine cost of goods sold
D) none of the above
Feedback: A sales forecast begins the process.
4 INCORRECT
Pro forma statements are _B______ statements.
A) actual
B) projected
C) a previous year's
D) none of the above
Feedback: Pro forma statements are based on estimates or projections.
5 INCORRECT
All of the following compose cost of goods sold except ______D__________.
A) raw material
B) labor
C) overhead
D) all of the above are part of cost of goods sold
Feedback: The cost of good sold involves all three of these items.
6 INCORRECT
Financial managers use the ______B_______ to plan for monthly financing needs.
A) capital budget
B) cash budget
C) pro forma income statement
D) none of the above
Feedback: The cash budget allows for planning cash needs.
7 INCORRECT
The payments that a firm collects from its customers are called _______C________.
A) cash disbursements
B) cash outflows
C) cash receipts
D) none of the above
Feedback: Cash receipts represent cash coming into the firm.
8 INCORRECT
Examples of cash disbursements are all but _________B________.
A) payment for materials purchased
B) collection of accounts receivable
C) payment of dividends
D) payment of taxes
Feedback: The collection of accounts receivable is an example of a cash receipt, not a cash disbursement.
9 CORRECT
In developing the pro forma balance sheet, we get common stock from __________A_______.
A) the firm's previous balance sheet
B) the firm's cash budget
C) the firm's income statement
D) none of the above
Feedback: Common stock appears on the balance sheet.
10 INCORRECT
The percent of sales method of financial forecasting shows us the relationship between
________D___ and financing needs.
A) changes in the level of liabilities
B) changes in the level of assets
C) changes in debt
D) changes in the level of sales
Feedback: It compares the relationship between balance sheet items and sales.
第五章
An example of a semi-variable cost is: D
A) rent
B) raw material
C) depreciation
D) utilities
Feedback: The other three represent fixed or variable costs.
2 CORRECT
_________A____ is the point at which firm profit is equal to zero.
A) breakeven
B) operating breakeven
C) financial leverage
D) combined breakeven
Feedback: This is the point where the firm's revenues equal its expenses.
3 INCORRECT
In breakeven analysis, if fixed costs rise, then the breakeven point will _____B_____.
A) fall
B) rise
C) stay the same
D) none of the above
Feedback: This implies that a larger quantity will have to be sold in order to break even.
4 INCORRECT
In the breakeven formula, Price - Variable Cost is called the___C__________.
A) breakeven point
B) leverage
C) contribution margin
D) none of the above
Feedback: This implies that a larger quantity will have to be sold in order to cover the additional fixed costs and still break even.
5 INCORRECT
Which of the following types of firms may operate with high operating leverage? B
A) a doctor's office
B) an auto manufacturing facility
C) a mental health clinic
D) none of the above would have high operating leverage
Feedback: This implies a high break-even point and high operating expenses.
6 INCORRECT
The __________C__________ is the percentage change in operating income that results from a percentage change in sales.
A) degree of financial leverage
B) breakeven point
C) degree of operating leverage
D) degree of combined leverage
Feedback: This is called the degree of operating leverage (DOL).
7 CORRECT
If interest expenses for a firm rise, we know that firm has taken on more ______A________.
A) financial leverage
B) operating leverage
C) fixed assets
D) none of the above
Feedback: Financial leverage refers to interest expense on debt.
8 INCORRECT
The ________B________ is the percentage change in earnings per share that results from a percentage change in operating income.
A) degree of combined leverage
B) degree of financial leverage
C) breakeven point
D) degree of operating leverage
Feedback: This is known as the degree of financial leverage (DFL).
9 INCORRECT
Combined leverage is the percentage change in relationship between sales and ______C______.
A) operating income
B) operating leverage
C) earnings per share
D) breakeven point
Feedback: This combines operating leverage and financial leverage.
10 INCORRECT
A highly leveraged firm is ____B______ risky than its peers.
A) less
B) more
C) the same
D) none of the above
Feedback: Leverage is equivalent to risk, because it implies a higher level of fixed costs.
第六章
Working capital management involves the financing and management of the __C_____ assets of the firm.
A) fixed
B) total
C) current
D) none of the above
Feedback: Working capital management deals with the financing and management of current
assets.
2 INCORRECT
An asset sold at the end of a specified time period is called a ______B_______ asset.
A) temporary current
B) self-liquidating
C) current
D) permanent current
Feedback: A self-liquidating asset is one that will be sold after a certain amount of time.
3 CORRECT
Fixed assets are usually financed with _______A______ funds.
A) long-term
B) short-term
C) permanent
D) none of the above
Feedback: Fixed assets are by definition long-term assets.
4 INCORRECT
_________B_____ is usually used to finance self-liquidating assets.
A) Long-term financing
B) Short-term financing
C) Permanent financing
D) none of the above
Feedback: These are short-term or temporary assets.
5 INCORRECT
Short-term interest rates, in a normal economy, are generally ____C____ than long-term rates.
A) higher
B) the same
C) lower
D) none of the above
Feedback: Long-term interest rates are normally higher than short-term interest rates to compensate for uncertainty or risk.
6 INCORRECT
The expectations hypothesis says that _____B____ interest rates are a function of _______ interest rates.
A) short-term; long-term
B) long-term; short-term
C) short-term; short-term
D) none of the above
Feedback: This theory says that long-term interest rates reflect the average of short-term expected rates.
7 INCORRECT
Insurance companies would tend to invest in ______C____ securities.
A) short-term
B) intermediate term
C) long-term
D) not enough information to answer
Feedback: An insurance company would prefer long-term securities because they are more conservative or safer.
8 INCORRECT
The _________D_____ theory says that investors must be paid a premium to hold long-term securities.
A) expectations hypothesis
B) time value theory
C) segmentation
D) liquidity premium
Feedback: This is the liquidity premium.
9 INCORRECT
Short-term financing plans with high liquidity have: B
A) high return and high risk
B) moderate return and moderate risk
C) low profit and low risk
D) none of the above
Feedback: This is known as a "middle-of-the-road" approach.
10 INCORRECT
Long-term financing plans with low liquidity have: B
A) high return and high risk
B) moderate return and moderate risk
C) low return and low risk
D) none of the above
Feedback: This is also known as a "middle-of-the-road" approach.
第七章
The transaction motive for holding cash is for B
A) a safety cushion
B) daily operating requirements
C) compensating balance requirements
D) none of the above
Feedback: This is money for everyday transactions.
2 CORRECT
Which of the following motives for holding cash is required by the bank before loaning money? A
A) compensating balance motive
B) transactions motive
C) precautionary motive
D) none of the above
Feedback: This can be considered a form of collateral.
3 INCORRECT
The difference between the cash balance on the firm's books and the balance shown on the bank's books is called: B
A) the compensating balance
B) float
C) a safety cushion
D) none of the above
Feedback: Float implies that it takes time for checks to clear.
4 CORRECT
Electronic funds transfer has _____A_____ the use of float.
A) reduced
B) increased
C) had no effect on
D) none of the above
Feedback: Electronic funds transfer (EFT) has moved cash more quickly and reduced float.
5 INCORRECT
The most utilized marketable security by most firms is the: D
A) Treasury bond
B) Agency security
C) Certificate of Deposit
D) Treasury bill
Feedback: Treasury bills (T-Bills) are very safe, popular investments.
6 INCORRECT
Of the following marketable securities, which are guaranteed by the Federal government? D
A) agency securities
B) negotiable certificates of deposit
C) banker's acceptances
D) none of the above
Feedback: None of these are backed by the government.
7 INCORRECT
The 5 C's of credit include: D
A) conditions
B) collateral
C) character
D) all of the above
Feedback: The other two C's of credit are capacity and capital.
8 INCORRECT B
The use of safety stock by a firm will:
A) reduce inventory costs
B) increase inventory costs
C) have no effect on inventory costs
D) none of the above
Feedback: Safety stock is extra inventory a firm keeps in case of unforseen circumstances.
9 INCORRECT
All of these factors are used in credit policy administration except: C
A) credit standards
B) terms of trade
C) dollar amount of receivables
D) collection policy
Feedback: The other three choices are the primary policy variables to consider.
10 CORRECT
Firms aim to hold ___A___ cash balances since cash is a non-interest earning asset.
A) low
B) average
C) high
D) none of the above
Feedback: A firm does not want to keep too much cash on hand because it will lose interest (by not keeping the money in a bank).
第八章
The largest provider of short-term credit for a business is: B
A) banking organizations
B) suppliers to the firm
C) commercial paper
D) Eurodollars
Feedback: This is also known as trade credit.
2 INCORRECT
The number of days until the firm is past due to a supplier is called the: C
A) discount period
B) term to credit
C) payment period
D) none of the above
Feedback: The payment period is the number of days a firm has to pay its bill.
3 INCORRECT
If a firm is given trade credit terms of 2/10, net 30, then the cost of the firm failing to take the discount is: C
A) 2%
B) 30%
C) 36.72%
D) 10%
Feedback: This is calculated using formula 8-1 in this chapter.
4 CORRECT
The interest rate given by a bank to its most creditworthy customers is the: A
A) prime rate
B) LIBOR rate
C) federal funds rate
D) discount rate
Feedback: This is the "best" interest rate charged to people with excellent credit.
5 INCORRECT
Which of the following types of bank loans generally have the highest effective rate of interest? D
A) simple interest loan
B) discount interest loan
C) loan with a compensating balance
D) installment loan
Feedback: Installment loans tend to be the most expensive.
6 INCORRECT
If a firm needs to borrow $100,000, at 8% interest, to finance working capital needs and a 20% compensating is required, then the firm should borrow ____C______.
A) $100,000
B) $80,000
C) $125,000
D) $108,000
Feedback: The formula to calculate this is: amount needed/(1-c), where c = the compensating balance percentage.
7 CORRECT
If a bank offers a firm a simple interest loan of $1000 for 120 days at a cost of $60 interest, what is the effective rate of interest on the loan? A
A) 18.00%
B) 6.00%
C) 20.00%
D) none of the above
Feedback: This is calculated by using formula 8-2 in this chapter.
8 INCORRECT
If a company raises money to finance short-term needs by selling its accounts receivable to another party, this is called ___________. C
A) pledging
B) warehousing
C) factoring
D) none of the above
Feedback: Factoring means selling the accounts receivable outright.
9 INCORRECT
The most restrictive policy for using inventory as collateral for short-term borrowing is called: B
A) blanket inventory lien
B) warehousing inventory
C) trust receipt
D) factoring
Feedback: This is a complex method of inventory financing wherein the lender takes control of the inventory.
10 CORRECT
A type of accounts receivable financing where a firm uses its receivables as collateral is called: A
A) pledging
B) securitization
C) factoring
D) warehousing
Feedback: Pledging means using accounts receivable as collateral.
第九章
Both the future and present value of a sum of money are based on: C
A) interest rate
B) number of time periods
C) both a and b
D) none of the above
Feedback: These two factors are used in time value of money calculations.
2 INCORRECT
An annuity is ___________________. C
A) more than one payment
B) a series of unequal but consecutive payments
C) a series of equal and consecutive payments
D) a series of equal and non-consecutive payments
Feedback: An annuity is a stream of equal payments to be received in the future.
3 CORRECT
If you have $1000 and you plan to save it for 4 years with an interest rate of 10%, what is the future value of your savings? A
A) $1464.00
B) $1000.00
C) $1331.00
D) cannot be determined
Feedback: This is calculated by using formua 9-1 in this chapter.
4 INCORRECT
Time value of money is an important finance concept because: D
A) it takes risk into account
B) it takes time into account
C) it takes compound interest into account
D) all of the above
Feedback: Time value of money incorporates all of these concepts.
5 INCORRECT
The present value of a dollar to be received in the future is: C
A) more than a dollar
B) equal to a dollar
C) less than a dollar
D) none of the above
Feedback: The reason is because you can earn interest on the money.
6 CORRECT
The future value of a dollar that you invest today is: A
A) more than a dollar
B) equal to a dollar
C) less than a dollar
D) none of the above
Feedback: Again, the reason is because the money can earn interest.
7 INCORRECT
The future value of an annuity is: C
A) less than each annuity payment
B) equal to each annuity payment
C) more than each annuity payment
D) none of the above
Feedback: The reason has to do with compound interest (or interest earning more interest).
8 INCORRECT
The concepts of present value and future value are:D
A) directly related to each other
B) not related to each other
C) proportionately related to each other
D) inversely related to each other
Feedback: They are essentially opposite sides of a coin.
9 INCORRECT
If you win the lottery and you choose to have your proceeds distributed to you over a
twenty-year time period, with the first payment coming to you one year from today, which calculation would you use to calculate the worth of those proceeds to you today? D
A) future value of a lump sum
B) future value of an annuity
C) present value of a lump sum
D) present value of an annuity
Feedback: This is shown by formula 9-4 in this chapter. But this is not a typical situation. Most lotteries (let’s say $1 Million over 20 years), will pay you the first payment today and $50,000 each year for the next 19 years. This is actually an “annuity due” which is not covered in this text. You’d have to calculate the present value of the annuity for 19 years and add the initial $50,000 you received today.
10 CORRECT
You have $1000 you want to save. If four different banks offer four different compounding methods for interest, which method should you choose to maximize your $1000? A
A) compounded daily
B) compounded quarterly
C) compounded semi-annually
D) compounded annually
Feedback: The more often interest is compounded the faster it will grow because you will begin to earn interest on the interest sooner.
第十章
In valuing a financial asset, you use these variables: D
A) present value of future cash flows
B) discount rate
C) required rate of return
D) all of the above
Feedback: All of these are needed in order to value an asset.
2 CORRECT
The principal amount of a bond at issue is called: A
A) par value
B) coupon value
C) present value of an annuity
D) present value of a lump sum
Feedback: This is also known as the face value or stated value.
3 INCORRECT B
If a bond's value rises above its par value during its life, interest rates have:
A) gone up
B) gone down
C) stayed the same
D) there is no correlation with interest rates
Feedback: There is an inverse relationship between bond prices and interest rates (or yields).
4 INCORRECT
The basic "rent" that you are charged when you borrow money is called: C
A) inflation premium
B) risk premium
C) real rate of return
D) none of the above
Feedback: This is known as the opportunity cost in economics.
5 INCORRECT
As time to maturity draws near, a bond's value approaches: B
A) zero
B) par
C) the coupon payment
D) none of the above
Feedback: The bond price gets closer to its face value the closer it is to maturity (see figure 10-2 in this chapter).
6 INCORRECT
One characteristic of preferred stock is that:D
A) it has no maturity date
B) it is a hybrid security with characteristics of both common stock and debt
C) it pays a fixed dividend payment
D) all of the above
Feedback: Preferred stock is described by all of the above characteristics.
7 CORRECT
Common stock that has no growth in dividends is valued as if it were: A
A) preferred stock
B) a bond
C) an option
D) none of the above
Feedback: It is treated the same as preferred stock.
8 INCORRECT。