BFIN Final (midterm questions) || with 100% Correct Answers.

Which one of the following is the financial statement which shows the accounting value of a firm's equity as of a particular date? (B-41; C-11) a) Income statement b) Creditor statement c) Balance sheet d) Statement of cash flows e) Dividend statement correct answers Balance sheet Net working capital is defined as: (B-42; C-12) a) Total liabilities minus shareholders' equity b) Current liabilities minus shareholders' equity c) Fixed assets minus long-term liabilities d) Total assets minus total liabilities e) Current assets minus current liabilities correct answers Current assets minus current liabilities Which one of these set forth the common set of standards and procedures by which audited financial statements are prepared? (B- 43; C-13) a) The Matching Principle b) The Cash Flow Identity c) Generally Accepted Accounting Principles d) Financial Accounting Reporting Principles e) Standard Accounting Value Guidelines correct answers Generally accepted accounting principles Which one of the following accounts is the most liquid? (B-44; C-14) a) Inventory b) Building c) Accounts Receivable d) Equipment e) Land correct answers Accounts Receivable The process of planning and managing a firm's long-term investment is called: (B-45; C-15) a) Capital Budgeting b) Working Capital c) Profit Maximization d) Capital Structure e) Investing correct answers Capital budgeting Which of the following forms of business organization is subject to double taxation? (B-46; C-16) a) Corporation