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Wednesday, 7 August 2013

In order to maximize your credit score, you must have exactly ____ major credit cards. 1. 2. 1 3. 2 4. 3 5. 4

In order to maximize your credit score, you must have exactly ____ major credit cards.
 
         
1.
 

2.
1
 

3.
2
   
4.
3
 

5.
4
 


Answer
3.
2

The U.S. has a ___tax system. 1. fair 2. flat 3. progressive 4. demonstrative

The U.S. has a ___tax system.
 

       
1.
fair
 

2.
flat
 

3.
progressive
   
4.
demonstrative
 


Answer
3.
progressive

The goal of the firm is to maximize 1. earnings 2. taxable income 3. shareholder wealth 4. cash flows

The goal of the firm is to maximize
 

       
1.
earnings
 

2.
taxable income
 

3.
shareholder wealth
   
4.
cash flows
 


Answer
3.
shareholder wealth

Which form of a corporation is not subjected to double taxation? 1. LLC 2. S Corp 3. C Corp 4. Both A and B 5. All the above

Which form of a corporation is not subjected to double taxation?
 
         
1.
LLC
 

2.
S Corp
 

3.
C Corp
 

4.
Both A and B
 

5.
All the above
 


Answer
4.
Both A and B

What percentage of your credit score is made up from your employment status? 1. 2. 5 3. 10 4. 30 5. 50

What percentage of your credit score is made up from your employment status?
 
         
2.
5
 

3.
10
 

4.
30
 

5.
50
 


Answer
 If you have this MCQ then post in the comments, I I will guide you in it.

1.

An individual buying a financial security would be an 1. production 2. consumption 3. in financial market 4. divested

An individual buying a financial security would be an
 

       
1.
production
 

2.
consumption
 

3.
in financial market
   
4.
divested
 


Answer
3.
in financial market

A company's current ratio should always be above: 1. .5 2. .75 3. .9 4. 1 5. 1.5

A company's current ratio should always be above:
 

       
1.
.5
 

2.
.75
 

3.
.9
 

4.
1
   
5.
1.5
 


Answer
4.  1

Which of the following is NOT a real asset? 1. Car 2. House 3. Land 4. Stocks 5. Table

Which of the following is NOT a real asset?
 

       
1.
Car
 

2.
House
 

3.
Land
 

4.
Stocks
 

5.
Table
 


Answer
Stocks

Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow: Selling price per unit $35 Manufacturing cost $4,100 per month plus $15 per unit Administrative expense $2,410 per month plus $1.80 per unit Sales commissions 11% of sales Advertising expense $1,870 per month If Buffo expects to produce and sell 6,700 units next month, the expected net operating income would be: $96,145 $87,765 $116,015 $107,515



Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow:
 Selling price per unit
$35
 Manufacturing cost
$4,100 per month plus $15 per unit
 Administrative expense
$2,410 per month plus $1.80 per unit
 Sales commissions
11% of sales
 Advertising expense
$1,870 per month
 If Buffo expects to produce and sell 6,700 units next month, the expected net operating income would be:
$96,145
correct
$87,765
$116,015
$107,515
Answer
$87,765
Sales ($35 x 6,700)

$234,500
 Variable expenses:


 Manufacturing ($15 x 6,700)
$100,500

 Sales commissions (11% x $234,500)
25,795

 Administrative ($1.80 x 6,700)
12,060
138,355
 Contribution margin

96,145
 Fixed expenses:


Manufacturing cost
4,100

 Advertising expense
1,870

 Administrative
2,410
  8,380
 Net operating income

$87,765

Which of the following is a theoretical measure of a firm's strength? 1. ROA 2. ROE 3. Current Ratio 4. Quick Ratio

Which of the following is a theoretical measure of a firm's strength?
 

       
1.
ROA
 

2.
ROE
 

3.
Current Ratio
 

4.
Quick Ratio
 


Answer
ROE

You own an S-Corporation. You are not subject to double taxation. True Flase

You own an S-Corporation. You are not subject to double taxation.
  1. True
  2. Flase
Answer
True

Owner's equity is 1. liabilities-assets 2. assets-liabilities 3. assets-equity 4. equity-assets

Owner's equity is
 

       
1.
liabilities-assets
 

2.
assets-liabilities
   
3.
assets-equity
 

4.
equity-assets
 


Answer
assets-liabilities

You sell your house and make $10,000. The tax you would pay on this is: 1. income 2. sales 3. consumption 4. capital gains

You sell your house and make $10,000. The tax you would pay on this is:
 
         
1.
income
 

2.
sales
 

3.
consumption
 

4.
capital gains
 


Answer
capital gains
 

Labeau Products, Ltd., of Perth, Australia, has $14,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: (Ignore income taxes.) Invest in Project X Invest in Project Y Investment required $14,000 $14,000 Annual cash inflows $6,000 Single cash inflow at the end of 9 years $68,000 Life of the project 9 years 9 years The company's discount rate is 16%. To determine the appropriate discount factor(s) using tables, click here to viewExhibit 12B-1andExhibit 12B-2. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem. Required: (1) Determine the net present value. (Round your answer to the nearest dollar amount. Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.) Net Present Value Project X $ Project Y $ (2) Which investment would you recommend that the company accept?


Labeau Products, Ltd., of Perth, Australia, has $14,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: (Ignore income taxes.)



Invest in
Project X
Invest in
Project Y
  Investment required
$14,000    
$14,000    
  Annual cash inflows
$6,000    

  Single cash inflow at the end of 9 years

$68,000    
  Life of the project
9 years    
9 years    

 
The company's discount rate is 16%.

To determine the appropriate discount factor(s) using tables, click here to view Exhibit 12B-1 and Exhibit 12B-2. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem.

Required:

(1)
Determine the net present value. (Round your answer to the nearest dollar amount. Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.)


Net Present
Value
  Project X
$13,642 correct   
  Project Y
$3,884 correct   

 
(2)
Which investment would you recommend that the company accept?



Project X correct

Explanation:
(1)
Item
Year(s)
Amount of
Cash Flows
16%
Factor
Present
Value of
Cash Flows
  Project X:




     Investment
Now
$(14,000)   
1.000    
$(14,000)   
     Annual cash inflow
1-9
$6,000    
4.607    
27,642    
     Net present value



$13,642    
  Project Y:




     Initial investment
Now
$(14,000)   
1.000    
$(14,000)   
     Single Cash inflow
9
$68,000    
0.263    
17,884    
     Net present value



$3,884   


(2)
Project X should be selected since it has a higher net present value.