Bus 379
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1. (TCO 1) Which one of the following actions best matches the primary goal of financial management? increasing the net working capital while lowering the long-term asset requirements improving the operating efficiency, thereby increasing the market value of the stock increasing the firm’s market share reducing fixed costs and increasing variable costs increasing the liquidity of the firm by transferring short-term debt into long-term debt
2. (TCO 1) Which of the these activities is not a capital budgeting task? determining the amount of cash needed on a daily basis to operate a firm identifying assets that produce value in excess of the cost to acquire those assets evaluating the size and timing of future cash flows from a project evaluating the risks associated with a proposed project
3. (TCO 1) Market value reflects which of the following: The amount someone is willing to pay today for an asset. The value of the asset based on generally-accepted accounting principles. The asset’s historical cost. A and B only None of the above
4. (TCO 1) Which of the following is true regarding income statements? It reveals the net cash flows of a firm over a stated period of time. It reflects the financial position of a firm as of a particular date. It records revenue only when cash is received for the product or service provided. It records expenses based on the recognition principle. None of the above is a true statement.
5. (TCO 1) Tato’s Pizza has sales of $625,000. They paid $43,000 in interest during the year and depreciation was $79,000. Administrative costs were $100,000 and other costs were $160,000. Assuming a tax rate of 35 percent, what is Tato’s Pizza net income?
$157,950
Top of Form
1. (TCO 1) Which one of the following actions best matches the primary goal of financial management? increasing the net working capital while lowering the long-term asset requirements improving the operating efficiency, thereby increasing the market value of the stock increasing the firm’s market share reducing fixed costs and increasing variable costs increasing the liquidity of the firm by transferring short-term debt into long-term debt
2. (TCO 1) Which of the these activities is not a capital budgeting task? determining the amount of cash needed on a daily basis to operate a firm identifying assets that produce value in excess of the cost to acquire those assets evaluating the size and timing of future cash flows from a project evaluating the risks associated with a proposed project
3. (TCO 1) Market value reflects which of the following: The amount someone is willing to pay today for an asset. The value of the asset based on generally-accepted accounting principles. The asset’s historical cost. A and B only None of the above
4. (TCO 1) Which of the following is true regarding income statements? It reveals the net cash flows of a firm over a stated period of time. It reflects the financial position of a firm as of a particular date. It records revenue only when cash is received for the product or service provided. It records expenses based on the recognition principle. None of the above is a true statement.
5. (TCO 1) Tato’s Pizza has sales of $625,000. They paid $43,000 in interest during the year and depreciation was $79,000. Administrative costs were $100,000 and other costs were $160,000. Assuming a tax rate of 35 percent, what is Tato’s Pizza net income?
$157,950