POF Chapter 123

The controller, rather than the treasurer, is typically responsible for which one of the following functions?

• Depositing cash receipts        

• Analyzing equipment purchases

• Approving credit for a customer

• Processing cost reports

• Paying a vendor

In a typical corporate organizational structure:

• the vice president of finance reports to the chair of the board.         

• the chief executive officer reports to the president.

• the controller reports to the chief financial officer.

• the treasurer reports to the president.
  
  

• the chief operations officer reports to the vice president of production.

Which of the following actions would be considered an agency problem?

• An owner of a sole proprietorship takes company office supplies for personal use 

• Both partners in a general partnership close the office early one day to go skiing

• A manager in a corporation buys shares of the company’s stock when the price falls

• A manager in a corporation makes online personal travel arrangements during work

•  A shareholder in a corporation sells shares of the company’s stock when the price rises

Which one of the following statements concerning stock exchanges is correct

• Nasdaq is a broker market.

• The NYSE is a dealer market.

• The exchange with the strictest listing requirements is Nasdaq.

• Some large companies are listed on Nasdaq.

• Most debt securities are traded on the NYSE.

Which one of the following would cause a cash outflow from a corporation

• Issuing new securities

• Paying dividends

• Taking out a loan from a bank

• Receiving a tax refund from the government

• Assigning common stock to employees

Which one of the following is a cash flow from a corporation into the financial markets

• Borrowing of long-term debt

• Payment of government taxes

• Payment of loan interest

• Issuance of corporate debt

• Sale of common stock

A limited liability company

• can only have a single owner.

• is comprised of limited partners only.
  
  

• is taxed similarly to a partnership.

• is taxed similarly to a C corporation.
  
  

• generates totally tax-free income.

Which one of the following is classified as a tangible fixed asset?

• Accounts receivable

• Goodwill

• Computer equipment

• Cash

• Inventory
             

Cookies by Casey has sales of $487,000 with costs of $263,000. Interest expense is $26,000 and depreciation is $42,000. The tax rate is 21 percent. What is the net income

• $180

• $520

• $1,020

• $880

• $1,200
             

Which one of the following is excluded from the cash flow from assets?

• Accounts payable       

• Inventory

• Sales

• Interest expense

• Cost of goods sold