managerial finance

On a balance sheet, ________ is (are) reported with fixed assets.

• intangible assets

• accounts payable

• preferred stock

• inventory

If total assets increase:

• net working capital must also increase.

• stockholders’ equity must also increase.

• the change must be offset by an equal increase in liabilities and stockholders’ equity.

• net income must be positive.

At the beginning of the year, a firm has current assets of $317 and current liabilities of $221. At the end of the year, the current assets are $471 and the current liabilities are $261. What is the change in net working capital?

• $114

• $0

• $154

• $194

The __________ is the positive difference between the selling price and the cost of goods sold.

• Net Profit

• Gross Profit

• Net Loss

• Gross Loss

Profit for the year = Gross profit plus Other income minus __________ .

• Assets

• Liabilities

• Expenses

• Revenue

__________

are assets which are obtained for use and not for resale, which help the business earn revenue.

• Current Assets

• Non-Current Assets

• __________ are amounts which are due for repayment within the next 12 months.

• Current Liabilities

• Non-Current Liabilities

What is the primary difference between current and non-current liabilities?

• Current liabilities are due within one year, while non-current liabilities are due after one year.

• Current liabilities are larger in amount than non-current liabilities.

• Non-current liabilities are always interest-bearing, while current liabilities are not.

• Current liabilities are always secured, while non-current liabilities are unsecured.

Which financial ratio is used to assess a company's liquidity?

• Debt to equity ratio

• Current ratio

• Return on equity

• Price to earnings ratio

What is the impact of depreciation on the statement of financial position?

• It increases the value of non-current assets.

• It decreases the value of non-current assets.

• It has no impact on the statement of financial position.

• It increases the value of current liabilities.