July2023

When Expenses are greater than Revenue a company has a __?

• Net Loss

• Shareholders Equity

• Net Profit

• Liabilities

Which of the 5 C's of Credit is pledged as security for a repayment of a loan

• Capacity

• Character

• Collateral

• Conditions

A ratio that compares investor's and creditors stake in a company.

• Debt Ratio

• Debt to Equity Ratio

• Equity Ratio

• Profit Margin Ratio

The most liquid asset a company has is __?

• Inventory

• Accounts Receivable

• Cash

• Human Capital

The Formula to calculate Return on Assets is

• Net Income divided by Sales

• Units times Price

• Net Income divided by Liabilities

• Net Income divided by Assets

Time Value of money indicates that

• Money Obtained today is worth more than a unit of money obtained in the future

• Money obtained today is worth less than a unit of money obtained in the future

• There is no difference in the value of money obtained today and tomorrow

• Money increases in value if it is kept in a safety deposit box

Which of the following statements concerning NPV is NOT True?

• NPV technique takes into account the time value of money

• NPV is the sum of all the discounted cashflows associated with a project

• NPV technique takes into account all the cashflows associated with the project.

• The projected expected to yield the lowest NPV should be selected

If the Payback period is 4 years and the cashflow is $2,750,000 each year, what is the initial investment

• $9,000,000

• $10,000,000

• $11,000,000

• $12,000,000

The future value (approx.) where present value = 1,000, r=6%, and n=10 = ?

FV = PV x (1+r)^t

• $1,600.22

• $400.01

• $1,790.85

• $1,645.32

The Balance Sheet Equation is

• Assets = Liabilities + Owners Equity

• Liabilities = Assets + Owners Equity

• Owners Equity = Assets + Liabilities

• Assets = Liabilities - Owners Equity