TR - BFIN300 Midterm

Which one of the following is the financial statement that shows the accounting value of a firm's equity as of a particular date?

• Income Statement

• Creditor Statement

• Balance Sheet

• Statement of Cash Flows

• Dividend Statement

Net working capital is defined as:

• Total liabilities minus shareholder's equity

• Current liabilities minus shareholder's equity

• Fixed assets minus long-term liabilities

• Total assets minus total liabilities

• Current assets minus current liabilities

Which one of these set forth the common set of standards and procedures by which audited financial statements are prepared?

• The Matching Principle

• The Cash Flow Identity

• Generally Accepted Accounting Principles

• Financial Accounting Reporting Principles

• Standard Accounting Value Guidelines

Which one of the following accounts is the most liquid?

• Inventory

• Building

• Accounts Receivable

• Equipment

• Land

The cash flow related to interest payments less any new borrowing is called the:

• Operating cash flow

• Capital spending cash flow

• Net working capital

• Cash flow from assets

• Cash flow to creditors

Noncash items refer to:

• Accrued expenses

• Inventory items purchased using credit

• The ownership of intangible assets such as patents

• Expenses which do not directly affect net cash flows

• Sales which are made using store credit

Which of the following are current assets?

• Cash

• Trademark

• Accounts Receivable

• Notes Payable

Which of the following are included in current liabilities?

• Note payable to a supplier in 13 months

• Amount due from a customer last week

• Account payable to a supplier that is due next week

• Loan payable to the bank in 10 months

Which one of the following statements concerning net working capital is correct?

• Net working capital increases when inventory is purchased with cash

• Net working capital excludes inventory

• Total assets must increase if net working capital increases

• Net working capital may be a negative value

• Net working capital is the amount of cash a firm currently has available for spending

A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called:

• General partner

• Sole proprietor

• Limited partner

• Corporate shareholder

• Zero partner