WorksheetsPre UAS Keubis
Total questions: 25
Worksheet time: 33mins
Name
Class
Date
1.
Interest earned on a given deposit that has become part of the principal at the end of a specified period is called compound interest.
a)
true
b)
false
2.
Annual rate of return dapat disebut juga (dapat lebih dari 1)
a)
discount rate
b)
opportunity cost
c)
cost of capital
3.
________ is an annuity with an infinite life making continual annual payments
a)
A perpetuity
b)
A primia
c)
An indefinite
d)
A deep discount
4.
The NOMINAL rate of interest is the contractual rate of interest charged by a lender or promised by a borrower.
a)
true
b)
false
5.
The future value of an annuity DUE is always greater than the future value of an otherwise identical ORDINARY annuity for interest rates greater than zero.
a)
true
b)
false
6.
________ are the MAJOR source of UNSECURED short-term financing for business firms.
a)
Accounts receivable
b)
Accruals
c)
Notes payable
d)
Accounts payable
7.
3/10 net 45 EOM translates as
a)
a 10 percent cash discount may be taken if paid in three days; if no cash discount is taken, the balance is due in 45 days.
b)
a 3 percent cash discount may be taken if paid in 10 days; if no cash discount is taken, the balance is due 45 days after transaction is complete.
c)
a 3 percent cash discount may be taken if paid in 10 days; if no cash discount is taken, the balance is due 45 days after the end of the month.
d)
a 3 percent discount may be taken on 10 percent of the purchase if the account is paid within 45 days after the end of the month
8.
The cost of giving up a cash discount on a credit purchase is
a)
added on to the price of the goods.
b)
deducted from the price of the goods.
c)
the implied interest rate paid in order to delay payment for an additional number of days.
d)
the true purchase price of the goods.
9.
By OFFERING CREDIT to customers, the firm may
a)
increase the price of the good to cover its costs
b)
decrease its investment in accounts receivable
c)
decrease its investment in accounts payable
d)
decrease the cost of goods purchased.
10.
A line of credit is an agreement between a commercial bank and a business specifying the amount of unsecured short-term borrowing the bank will make available to the firm over a given period of time.
a)
true
b)
false
11.
The ________ is the lowest rate of interest charged on business loans to the best business borrowers by the nation's leading banks.
a)
prime rate
b)
commercial paper rate
c)
federal funds rate
d)
treasury bill rate
12.
In a revolving credit agreement, the firm pays interest on
a)
the full line of credit.
b)
the unused portion of the line of credit.
c)
only the amount actually borrowed.
d)
the amount actually borrowed and commitment fees on any unused portion of the loan.
13.
With a floating-rate note, the interest rate on the note changes
a)
when the risk level of the borrower changes.
b)
when the prime rate changes.
c)
when the demand for loans changes.
d)
when bank profits change.
14.
Revolving credit agreements are
a)
guaranteed loans that specify the maximum amount that a firm can owe the bank at any point in time.
b)
non-guaranteed loans that specify the maximum amount that a firm can owe the bank at any one time.
c)
credit arrangements made in cooperation with suppliers that allows the firms to roll over accounts payable each month.
15.
________ is a short-term, unsecured promissory note issued by firms with a high credit standing. These notes are primarily issued by COMMERCIAL FINANCE companies.
a)
A line of credit
b)
Commercial paper
c)
A revolving line of credit
d)
A self-liquidating loan
16.
The goal of short-term financial management is to manage each of the firm's current assets and current liabilities in order to achieve a balance between profitability and risk that contributes to the firm's value.
a)
true
b)
false
17.
Net working capital is defined as
a)
a ratio measure of liquidity best used in cross-sectional analysis.
b)
the portion of the firm's assets financed with short-term funds.
c)
current liabilities minus current assets.
d)
current assets minus current liabilities.
18.
In general, the more net working capital a firm has,
a)
the greater its risk.
b)
the lower its risk.
c)
the less likely are creditors to lend to the firm.
d)
the lower its level of long-term funds.
19.
The firm's FINANCING REQUIREMENTS can be separated into
a)
current liabilities and long-term funds.
b)
current assets and fixed assets.
c)
current liabilities and long-term debt.
d)
seasonal and permanent.
20.
The ________ of a firm is the amount of time that elapses from the point when the firm inputs material and labor into the production process to the point when cash is collected from the sale of the finished product that contains these production inputs.
a)
operating cycle
b)
average payment period
c)
average age of inventory
d)
average collection period
21.
The ________ is the time period that elapses from the point when the firm makes the outlay to purchase raw materials on account to the point when payment is made to the supplier of the goods.
a)
cash conversion cycle
b)
average payment period
c)
average age of inventory
d)
average collection period
22.
The ________ is the time period that elapses from the point when the firm uses the raw materials in manufacturing a finished good to the point when the finished good is sold.
a)
cash conversion cycle
b)
average payment period
c)
average age of inventory
d)
average collection period
23.
The ________ is the time period that elapses from the point when the firm sells a finished good on account to the point when the receivable is collected.
a)
cash conversion cycle
b)
average payment period
c)
average age of inventory
d)
average collection period
24.
In the aggressive financing strategy, a firm anticipating a large increase in sales should finance the increase in working capital with
a)
the sale of common stock.
b)
the sale of a bond issue.
c)
a line of credit.
d)
a long-term note from the bank.
25.
The conservative financing strategy results in financing all projected funds requirements with ________ funds and use of ________ funds in the event of an unexpected cash outflow
a)
long-term; short-term
b)
short-term; long-term
c)
permanent; seasonal
d)
seasonal; permanent
100 %
