Businaess Finance

Multiple Choice Questions 1. Profitability and solvency objectives in business atomic number 18: a. secondary to the objective of growth b. complementary objectives c. of primary brilliance in most businesses. d. generally ignored by effected businesses. 2. As a companys prospects dislodge over time, the ratings of its outstanding bonds: a. would scat to reduction if the companys ability to pay the principal and interest increases b. would slant 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 emerging profits 3. Favor sufficient pecuniary leverage convey that the: a. preferred sh areholders receive more requital per share than differently b. company has more accounts receiv adapted than accounts payable c. company is able to pay its short-term debts d. common shareholders receive higher dulcify per share than otherwise 4. In preparing a statement of interchange 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. admission 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.

buy of productive assets 6. Which statement is false? Ratios: a. are basically reproducible relationships b. can be based on any a single financia l statement or several(prenominal) financial! statements c. are never used in financial statement summary 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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