Foundations of Business Finance (Peregrine) question with correct answers 2023
102 views 3 purchases
Course
Peregrine
Institution
Peregrine
Foundations of Business Finance (Peregrine) question with correct answers 2023True or false: The one fixed asset that is not depreciated is land because it seldom declines in value. - correct answer True
__________ liabilities are those due within one year. - correct answer Current
__________...
Foundations of Business Finance (Peregrine) question with correct answers 2023
True or false: The one fixed asset that is not depreciated is land because it seldom declines in value. - correct answer True
__________ liabilities are those due within one year. - correct answer Current
__________-__________ __________ liabilities are due after more than a year, and may include bonds, mortgages, and long-term loans. - correct answer Long-term debt
Name the three types of accounts listed as current liabilities on balance sheets. - correct answer (1) Accounts Payable
(2) Notes Payable
(3) Accrued Expenses
Accounts payable - correct answer The amounts owed for credit purchases by a firm
Notes payable - correct answer Outstanding short-term loans, typically from commercial banks
Accrued expenses - correct answer Costs that have been incurred by a firm which have not yet been paid; examples of accruals include taxes owed to the government and unpaid wages
The __________ __________ section of a balance sheet provides information about the claims against a firm held by investors who own preferred and common shares. - correct answer Stockholders' equity
The Stockholders' equity section of the balance sheet is reflected in four types of accounts. These include __________ __________, __________ __________, __________-__________-__________ __________ ___________ __________ __________, and __________ __________. - correct answer (1) preferred stock
(2) common stock
(3) paid-in-capital excess of par
(4) retained earnings
__________ __________ shows the total proceeds from the sale of preferred stock. - correct answer Preferred stock
__________-__________-__________ __________ __________ __________ __________ equals the number of shares outstanding multiplied by the original selling price of the shares, net of the par value. -
correct answer Paid-in-capital in excess of par
__________ __________ equals the number of outstanding common shares multiplied by the par value per share. - correct answer Common stock
__________ __________ (often $1) is an artifact of earlier pre-computer accounting methods used to track the number of outstanding shares. It has no relation to the actual value of the shares. - correct answer Par value
__________ __________ are the cumulative total of the earnings that the firm has reinvested in its assets and operations since its inception. - correct answer Retained earnings
The combined value of __________ __________ and __________-__________-__________ equals the proceeds the firm received when it originally sold shares to investors (including initial public offerings and rights offerings). - correct answer common stock, paid-in-capital
The __________ __________ entry on a balance sheet records the value of common shares that a firm currently holds in reserve. - correct answer treasury stock
The __________ __________ __________ __________ provides a summary of what cash has gone into and out of a firm because of its operations, investments, and financing activities during a year. It isolates the firm's operating, investment, and financing cash flows and reconciles them with changes in its cash and marketable securities during the year. - correct answer statement of cash flows
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BukayoSaka120. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R407,92. You're not tied to anything after your purchase.
