Corporate finance 1

Balance sheet ?

• Snapshot of the financial position of a company at a specified time,

  Assets = Liabilities + Equity

• Snapshot of the financial position of a company at a specified time,

  Asset = Liabilities + Withdraw

• Reporting a company's financial performance over a specific accounting period, Asset = Liabilities + Withdraw

• Reporting a company's financial performance over a specific accounting period, Assets = Liabilities + Equity

Which is NOT a basic financial statement?

• Income statement

• Cashflow statement

• Statement of financial position

• Statement of retained earnings.

How many parts the structure of an accounting standard includes

• 3

• 4

• 5

• 6

What is this?

• Income statement

• Balance sheet

• Financial statement note

• Cashflow statement

which is not in assets

• Money

• Printer

• Note payable

• Note receivable

A 'commodities forward contract' is which of the following?

• A contract in which the counterparties agree to exchange a commodity at some date in the future but at a price decided now.

• A contract in which the counterparties agree to exchange a commodity now but at a price decided in the future.

• A standardized exchange traded contract.

• The option but not the right to buy the underlying at some point in the future.

What is the value of the firm usually based on?

• The value of debt and equity.

• The value of equity.

• The value of debt.

• The value of assets plus liabilities

Which of the following does not make the firm more vulnerable to financial distress?

• High sensitivity of the company's revenues to the general level of economic activity.

• High proportion of fixed to variable costs.

• Physical capital assets which are relatively illiquid and difficult-to-market.

• The tax shield.

Which of the following would not be financed from working capital?

• Accounts receivable.

• Cash float.

• Credit sales.

• A new personal computer for the office.

Which of the following is not a characteristic of wholesale markets?

• Firms deal with other firms.

• Lending and borrowing is coordinated through banks.

• Borrowing and lending is not intermediated.

• Very large quantities of money are at stake.