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FINC 4331 Final Exam (CEC Certification) Questions and 100% Correct Verified Answers
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FINC 4331 Final Exam (CEC Certification) Questions and 100% Correct Verified Answers
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FINC 4331 Final Exam (CEC Certification)Questions and 100% Correct Verified
Answers
John and Mary Customer have submitted their current personal tax return that
contains the following information on various forms and schedulesBased on the
information provided, what is the couple's cash flow? - ANSWER $137,850
John Mayer started Mayer Architectural Associates 35 years ago and has built a stable
base of clients and a sound management team. He plans to retire in a year and his key
managers want to purchase the business from him, but have little equity to contribute.
Given this situation, which of the following would be most appropriate source
of financing for the buyout? - ANSWER seller note
Once a problem loan has been identified, which of the following best describes the
order in which a resolution should be reached? - ANSWER the borrower and
banker recognize a problem, then examine internal operations and external factors
to determine the cause, and assess resources available to address the problem
Personal credit scores are relevant when considering a commercial loan to a business
because: - ANSWER they are valid indicators as to a business management ability
Rose's Posies is a local florist with several locations in the county. You met the owner
recently and she has asked to speak with you about a potential loan request. Which of
the following would be the most typical type of loan this company would require? -
ANSWER a seasonal line of credit to fund inventory build-up
Sandy's seaside sundries sells a range of products at the New Jersey shore, including
sunscreen, beach toys, and beach apparel during the summer season. Which of the
, following types of financial information would be most relevant in determining both
the amount and duration of a seasonal financing need for the company? - ANSWER
Monthly cash budget or interims
Tax law provides for a variety of deductions that can be used by businesses or their
owners (if business is taxed at the ownership level). Which of the following deductions
would be available only to C corporations and not to S-corps, partnerships, LLCs and
their owners? - ANSWER Dividends received deduction
Weatherproof windows is a manufacturer of replacement windows for residential use.
The company reports fixed asset turnover ratios as follows for the last four years: Y1:
5.4x, Y2:6.0x, Y3:6.2x, Y4:1.45x
which statement is the most logical reason for the change in turnover seen in Y4? -
ANSWER company opened a new plant in Y4
What are the most important considerations when determining if a business's cash flow
should be included in global cash flow? - ANSWER Borrower can document ownership
and access to the business's cash flow, and the business is sufficiently liquid to
support its withdrawal
When a business property sale is reported on Form 4797 of a Form 1040, which of
the following statements best describes how this data should be handled in a global
cash flow? - ANSWER Include the sales proceeds net of any debt repayment and
expenses of sale if sales activities occur regularly
When a corporate tax return indicates that it is a consolidated return, it signifies that: -
ANSWER A list of subsidiaries is provided
When considering Form 1040 "wages, salaries, and tips" as a source of cash in the
global cash flow formula, one must recognize that the amount reported - ANSWER
is net of any pre-tax payroll allocations
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