Bfin 3 - Study guides, Class notes & Summaries

BFIN 300 Test Questions with Correct Answers Which one of the following accounts is the most liquid? a.) Inventory b.) Building c.) Accounts Receivable d.) Equipment e.) Land - Answer-c.) Accounts Receivable Noncash items refer to: a.) Accrued expenses b.) Inventory items purchased using credit c.) The ownership of intangible assets such as patents d.) Expenses which do not directly affect net cash flows e.) Sales which are made using store credit - Answer-c.) The ownership ...

BFIN 300 Midterm Exam Questions and Answers with Verified Solutions The process of planning and managing a firm's long-term investments is called Capital Budgeting Which of the following is an example of an indirect agency cost? A lost opportunity Which of the following forms of business organization is subject to double taxation? Corporation Control of a firm ultimately rests with The Stockholders Which of the following should a financial manager take into account when consid...

BFIN 350 CHP 20 Exam Questions and Answers All Correct What is the basic objective of cash management? - Answer-It is to keep the investment in cash as low as possbile while still keeping the firm operating efficiently and as effectively as possible. What is the goal of cash management? (hint: think AR and AP) - Answer-The goal of cash management is to collect early and pay late What are the 3 reasons John Maynard Keynes identified as being reasons why liquidity is important? - Answer-1)...

BFIN 350 Chapter 3 and 4 Exam Questions with Answers The financial ratio measured as EBIT plus depreciation divided by interest expense - Answer-Cash Coverage Ratio The financial ratio measured as the firm's long-term debt divided by its total capitalization - Answer-the long-term debt ratio The long-term debt ratio is probably of most interest to a firm's - Answer-debt holders The function described as the profit margin times the total asset turnover times the equity multiplier i...

BFIN 300 Final Review Questions & answers

BFIN 300 Midterm Exam Questions with Correct Answers Which of the following is an example of an indirect agency cost? A. Unnecessary corporate expenditure B. Management auditing expense C. A lost opportunity D. All of the above - Answer-C. A lost opportunity Which of the following forms of business organization is subject to double taxation? A. Corporation B. Partnership C. Limited Partnership D. Sole Proprietorship - Answer-A. Corporation Control of a firm ultimately re...

BFIN 300 Midterm Exam Questions and Answers All Correct The process of planning and managing a firm's long-term investments is called: A. Capital Budgeting B. Working Capital C. Profit Maximization D. Capital Structure - Answer-A. Capital Budgeting Which of the following is an example of an indirect agency cost? A. Unnecessary corporate expenditure B. Management auditing expense C. A lost opportunity D. All the above - Answer-A. Unnecessary corporate expenditure Which of ...

BFIN 300 Final Review Questions With Solutions You purchase a run-down home in Albany for $25,000 and spend another $25,000 to repair it. Your total in-cost is $50,000. When the work is done, you place the home back on the market and find that it's worth $60,000. What is your NPV? a) Zero b) $10,000 c) $25,000 d) $50,000 e) $60,000 $10,000 What is the difference between an investment's market value and cost? a) Internal Rate of Return (IRR) b) Net Present Value (NPV) c) Capital b...

BFIN 300 Final Exam Questions and Answers