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WorksheetsJuly2023
Total questions: 10
Worksheet time: 5mins
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
