- To acquire equity financing, the founders must give up some control of the businesses. ( )
- Equity investors primarily seek growth opportunities, while debt financiers primarily seek security. ( )
- EOQ is the order size for inventory that maximizes the total inventory cost. ( )
- The perpetual inventory system requires updating of the inventory account only at the beginning of an accounting period. ( )
- The DCF method accounts for risks in longer-term projects. ( )
- The decision to purchase new plant and equipment or to introduce a new product into the market does not require using capital allocating or capital budgeting techniques. ( )
- The target of profit maximization.will not make enterprises focus only on short-term benefits and one-sided pursuit of profit maximization.（ ）
- The statement of changes in owners’ equity represents a summary of the activities in the accounts that keep track of the shareholders’ investment in a company. ( )
- Taxes reduce the amount of interest that the investor can keep, and we refer to this reduced amount as the after-tax interest rate.( )
- The horizontal analysis is used mainly to（ ）
- Analysts can use the footnotes of the financial statements to ( ）
- Which accounts are increased on the credit side?（ ）
- Which type of financial planning approach would finance some of the seasonal net working capital needs with long-term liabilities and the balance with short-term financing?（ ）
- Which of the following statements best defines the current ratio?（ ）
- The following statements relate to the dividend policy. ① According to MM, in a perfect capital market, shareholders are indifferent between dividends and capital gains.② A residual theory states that dividends should be paid ahead of investing in positive NPV projects.Are the statements true or false?（ ）
- Interest rates also vary based on ( )
- The inventory valuation method that has the advantages of assigning an amount to inventory in the balance sheet that approximates its current cost, and also mimics the actual flow of goods for most businesses is . ( )
- The cash flow ratio is the ratio of ( )
- Which of the following is NOT a factor affecting the estimated service life? ( )
- Which of the following is based on the dividend irrelevance theory?（ ）
- A fixed asset’s useful life is 10 years, and under the DDB method, the depreciation rate is . ( )
- Which type of financial planning approach ensures that all long-term assets are financed through long-term liabilities, as well as the seasonal and permanent portions of net working capital?（ ）
- During 2014, Gibson Company’s assets decreased by $50,000 and its liabilities decreased by $90，000. Its equity therefore: （ ）
- Cash inflows from a project include .（ ）
- 19. On a bank reconciliation, the amount of unrecorded bank service charges should be . ( )
- For equity financing, there is the same obligation to repay the money as debt financing. ( )
- Based on cash, the preparation for the statement of cash flows refers to the monetary capital in accounting. ( )
- Accounts payable are a spontaneous source of funds, growing as the business expands on a seasonal or long-term basis and contracting in a like fashion when the business declines. ( )
- Internal control of cash receipts aims to ensure that all cash received is properly recorded and deposited. ( )
- The book value represents the cost of an asset minus the accumulated depreciation. ( )
- In general, holding a portfolio of stocks increases the risk of the portfolio because the stock returns do not all move together.( )
- Narrowly speaking, distribution only refers to the distribution of profits, especially the net profits.（ ）
- A firm earns revenues from the sale of its principal products. ( )
- The IRR of an investment opportunity is the discount rate at which the NPV of the investment opportunity is equal to zero. ( )
- The five C’s of credit are five general factors that credit analysts often consider whether to grant credit: character, capacity, capital, collateral and conditions. ( )
- Cash flows are more comprehensive than profit, which is dependent on accounting conventions and concepts, and is an advantage of cash flow accounting. ( )
- An aggressive working capital investment policy aims to reduce the risk of system breakdown by holding a high level of working capital. ( )
- Separation of duties divides responsibility for a transaction or a series of related transactions between two or more individuals or departments. Separation of duties reduces the risks of error and fraud. ( )
- A statement of financial position shows the financial condition of an accounting entity on a particular date. ( )
- ESOP means share control with employees rather than with outside investors. ( )
- A moderate working capital investment policy is a middle way between the aggressive and conservative approaches. ( )
- Which of the following items must appear on the face of the statement of profit or loss and other comprehensive incomes? （ ）
- Which of the following belong to advance payments from customers?（ ）
- Which of the following options is the confirmation of the proceeds of the sales of goods? （ ）
- Which of the following is an accelerated depreciation method? ( )
- On September 1, a customer’s account balance of $2,300 is deemed to be uncollectible. What entry should be recorded on September 1 to record the write-off assuming that the company uses the allowance method? ( )
- An important tool the financial executive can employ in dealing with uncertainty about the future is .（ ）
- Prepaid rent is a (n) account. ( )
- Indicate which following item is an asset? （ ）
- An example of cash flows from an operating activity is the . （ ）
- Which of the following is a disadvantage to a company using a factor for its accounts receivable?（ ）
- Working capital management is the management of and . ( )
- Which of the following is most likely to reduce a firm’s working capital?（ ）
- An investment project has a positive NPV. The IRR is .（ ）
- Which of the following would not be considered as an external user of accounting data for the GHI Company? （ ）
- Gross profit will result if ( ).
- To verify the accuracy of the recording process, accountants prepare ( ).
- The income statement for a merchandising company shows each of the following features EXCEPT ( ).
- The accounting process is correctly sequenced as（ ） .
- An entity that sprays chemicals in residences to eliminate or prevent the infestation of insects requires that customers prepay for 3 months’ service at the beginning of each new quarter. Which term appropriately describes this situation? （ ）
- Which of the following would not be considered as an internal user of accounting data for the GHI Company? （ ）
- A company has obtained a patent, and the fees paid are $20,000. The patent’s estimated useful life is 10 years. The amortization expense per year is . ( )
- Limited liability is the characteristic of . （ ）
- An analysis that explains any differences between the checking account balance according to the depositor’s records and the balance reported on the bank statement is a(n) . ( )
- The sales accounts that normally have a debited balance are ( ).
- Which type of financial planning approach involves relying on long-term debts to finance only a portion of the long-term assets and the permanent net working capital?（ ）
- FPP combines an aggregation of short-term operating budgets with strategic decisions. ( )
- The set of choice variables is the first element of the financial planning model. ( )
- The impact of future strategic choices on a company’s financial position must be anticipated. Such strategic choices include .（ ）
- Variables must be estimated that impacts on the pro forma statements, but are outside the control of the financial executive. Which of the following could be included?（ ）
- Which of the following are the firm factor to work out the dividend policy?（ ）
- The declaration date is the day the board of directors announcing their intention to pay a dividend. ( )
- 1. Which of the following sources of finance to companies is the most widely used in practice?（ ）
- The bird-in-the-hand theory argued that dividends are received on a present and going-concern basis, whereas the capital gains can be realized only in the future. ( )
- Which of the following are assumptions for MM’s dividend irrelevance theory?（ ）
- Which of the following statements concerning working capital management are correct?（ ）
- Working capital, sometimes called gross working capital, simply refers to current assets used in business operations. ( )
- Which of the following does determine the amount of credit offered by a supplier?（ ）
- Cash and near-cash assets are useful for taking advantage of favorable business opportunities such as special offers from suppliers or the chance to acquire another firm. ( )
- Which one of the following will decrease the operating cycle? （ ）
- The following are measures used by firms when making capital budgeting decisions include（ ）.
- The NPV method will accept a project, if the NPV is greater than zero. ( )
- One advantage of the PP method is that it provides a rough measure of a project’s liquidity and risk. ( )
- As the cost of capital increases, .（ ）
- The NPV of a project depends upon .（ ）
- Which of the following is a relevant cost in capital budgeting? （ ）
- Sunk costs and financial costs are both irrelevant for project valuation. ( )
- When considering a capital budgeting project, the investor should consider .（ ）
- Depreciation is incorporated in cash flows because it .（ ）
- Capital budgeting is the process of evaluating and selecting short-term investments consistent with a firm’s goal of owner wealth maximization. ( )
- The equity risk derived from a firm’s capital structure policy is called ( )
- which corporate strategy ESOP is often used as ? ( )
- Which is the benefit of equity financing?( )
- Which of the following statements about the characteristics of debt and equity is true? ( )
- Cash flows from debt and equity financing transactions are a kind of （ ）
- Corporate bonds are securities issued by corporations. They account for a significant amount of invested capital. ( )
- In providing loans and other services, a bank may require that business customers either pay a fee for the service or maintain the minimum average account balance. ( )
- The face value of a bond does not always correspond to the actual money raised because of underwriting fees and the possibility that the bond might not actually sell for its face value when it is offered for sale initially. ( )
- 51 Municipal bonds are issued by corporations and local governments. ( )
- A cash discount allows a reduction in price if the payment is made within a specified time period. ( )
- Due to different income calculation standards, the calculation methods of the return on total assets are also different. ( )
- Quick assets of an enterprise generally refer to the current assets minus unstable inventories and prepaid expenses. ( )
- The debt ratio is a company’s long-term debts divided by its net assets. ( )
- EPS is an important indicator for investors to analyze the profitability of enterprises. If there is a significant decline in EPS in a period compared with the previous period, it means a decline in the profitability of enterprises. ( )
- The main function of the asset-liability ratio index is to reveal the liquidity of all assets of an enterprise. ( )
- A wider range of possible realized returns means that a stock is not riskier.( )
- Generally, risk is defined as uncertainty about returns derived from investing in a financial asset.( )
- For a given standard deviation, investors prefer higher expected returns, while, for a given expected return, investors prefer lower standard deviation.( )
- The risk of a single investment (such as a stock) is defined as ,( ) .
- To be specific about the definition of risk, we use statistical measures( )
- The interest rate is often stated as an effective annual rate (EAR), which indicates the total amount of interest that will be earned ( )
- Interest-rate target is a vital tool of monetary policy, and is taken into account when dealing with variables like investment, inflation and unemployment.( )
- Because it does not include the effect of compounding, the APR quote is typically more than the actual amount of interest that you will earn. ( )
- ( ) is a rate at which interest is paid by a borrower (debtor) for the use of money that he or she borrowed from a lender (creditor).
- Banks also quote interest rates in terms of an annual percentage rate (APR), which indicates the amount of simple interest earned in one year, that is, the amount of interest earned with the effect of compounding.( )
- In determining the future value of annuity, we will use the formula ( )
- It is important that we develop the mathematical tools for the time value of money as the first step toward making capital allocation decisions. ( )
- In determining the present value, we will use the formula ( )
- The present value is the exact opposite of the future value. ( )
- In determining the present value of annuity, we will use the formula ( )
- Making financial decisions is an integral part of all forms and sizes of business organizations from small privately-held firms to large publicly-traded corporations.（ ）
- Corporate investors can be absorbed through （ ）
- Working capital management is the management of and . ( )
- Investment means the behavior of financing money by an enterprise according to the needs of a certain project. （ ）
- The main contents of financial management include（ ）
- In China, the cash receipts from interest and dividends belong to . （ ）
- The manner of presentation of cash flows among operating, investing and financing activities depends on the nature of the entity. ( )
- The main information for preparing the statement of cash flows comes from . （ ）
- Operating cash flows and investment flows can be related to matching cash recovery from operations to investment. ( )
- When we use the indirect method to prepare the statement of cash flows, the amortization of goodwill should be presented as a(n) . （ ）
- In the statement of profit or loss and other comprehensive incomes, the upper part reflects the operating activities, the lower part reflects the non-business activities, and the cut-off point is the profit for the year. ( )
- How is a prepayment classified in the statement of financial position? （ ）
- In the following options, should be accounted as non-operating expenses. （ ）
- Which of the following items does NOT belong to long-term debts?（ ）
- The operating profit is an enterprise’s business income and the difference between the operating costs and taxes. It includes both the profit on sales and other business profits, and is based on the sum of the two minus the management expenses and financial expenses. ( )
- Which of the following indicators can reflect the full financial results of a firm? （ ）
- The use of the percentage method of completion in labor transactions must be made only if the results of the provision of labor services can be reliably estimated. ( )
- Which of the options is the most important factor affecting the price of the products? （ ）
- Revenues can lead to an increase in the owners’ equity, and therefore, the increase in the owners’ equity should be recognized as the income of a firm. ( )
- Office expenses can be recognized immediately. ( )
- When a stock is issued at a price that is less than its par value, the stock has been sold at a premium. ( )
- Which is NOT a characteristic of partnerships? （ ）
- The worth of a share of stocks can be measured at its par value. ( )
- Preferred stocks are superior to common stocks with respect to corporations’ assets, profit distribution,etc. ( )
- Which is the disadvantage of corporations? （ ）
- Investors will be willing to pay more than the par value for bonds when the market rate of interest is higher than the contract rate of interest. ( )
- Accounts payable are amounts owed to others for goods, supplies and services purchased on account. ( )
- Liabilities are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. ( )
- The difference of between a bond’s par value and its lower issue price occurs when the contract rate is less than the market rate. （ ）
- Amounts owed to others for goods, supplies and services purchased on account are（ ）。
- Intangible assets with a limited useful life such as patents are usually converted to expenses over a number of accounting periods. ( )
- If purchased externally, intangible assets should be initially recorded at their . ( )
- Granted by the government, conveying the exclusive right to use a product or process for a period of certain years is . ( )
- Goodwill is the amount by which the purchase price exceeds the fair value of the net assets. ( )
- The method of amortization should reflect the pattern in which the economic benefits of the intangible assets are consumed or otherwise used up. ( )
- An increase in repair and maintenance costs and a decrease in revenue-producing ability in the later years of an asset’s useful life suggest that accelerated methods can better match revenues and expenses. ( )
- The choice of depreciation methods requires that the depreciation method used reflects the pattern in which the asset’s future economic benefits are expected to be consumed by the entity. ( )
- The estimate of amount to be recovered at the end of an asset’s useful life is . ( )
- Which of the following is NOT a characteristic of fixed asset? ( )
- Depreciation is a process of determining the value of assets. ( )
- Incidental costs often added to the costs of inventory include import duties, freight, storage, and insurance. ( )
- The cost flow assumption adopted must be consistent with the physical movement of the goods. ( )
- Physical counts of inventory . ( )
- Goods in transit are included in a purchaser’s inventory . ( )
- An advantage of the weighted average inventory method is that it tends to smooth out the erratic changes in costs. ( )
- Accounts receivable information for specific customers because it reveals . ( )
- Companies use two methods to account for uncollectible accounts: the direct write-off method and the allowance method. ( )
- When a customer purchases merchandise inventory from a business organization, he may be given a discount, which is designed to induce prompt payment. Such a discount is called the . ( )
- Under the allowance method of accounting for uncollectible accounts receivable, no attempt is made to estimate the bad debt expense. ( )
- A company has sales of $350,000, and estimates that 0.7% of its sales are uncollectible. The estimated amount of bad debt expense is $2,450. ( )
- After preparing a bank reconciliation, adjustments must be made for the items reconciling the bank balance and the items reconciling the book balance. ( )
- Cash, not including cash equivalents, includes . ( )
- The entry necessary to establish a petty cash fund should include . ( )
- Cash is the most liquid asset and most subject to theft and fraud. ( )
- A bank reconciliation explains any differences between the balance of a checking account in the depositor’s records and the balance reported in the bank statement. ( )
- A company purchased $4,500 of merchandise on May 1 with terms of 2/10, n/30. On May 8, it paid the balance owed for merchandise, taking any discount it is entitled to. The cash paid on May 8 is ( ).
- A company has $550,000 in net sales and $193,000 in gross profit. This means its cost of goods sold equals ( ).
- When the perpetual inventory system is used, the inventory sold is debited to （ ）.
- For each statement below, identify which statement applies to the periodic inventory system. ( )
- The statement of changes in owners’ equity contains assets, liabilities and capital. ( )
- Which components are included in a complete set of financial statements? （ ）
- Which item is an end product of the accounting process?（ ）
- The statement that shows net loss for a period is known as the statement of profit or loss and other comprehensive income. ( )
- The statement that shows net income for a period is known as the statement of cash flows. ( )
- Peter Ali received $5,000 for some excavation work to be done when the weather permitted. Peter thought it would be at least three weeks before he could start the job. Which statement best describes how the transaction is recorded? （ ）
- On the worksheet, the debit column of the statement of profit or loss and comprehensive income shows a total of $76,300. The credit column total is $82,400. What is the net income or loss? （ ）
- If accrued salaries were not recorded on December 31, how would the account balances be affected? （ ）
- Which statement best describes prepaid expenses? ( )
- Which accounts will appear on the post-closing trial balance .( )
- Which of the following statements about normal account balances is false? （ ）
- What is the impact of debit entries? （ ）
- The process of transferring information from journal to the ledger is known as . （ ）
- The initial book for recording all transactions is known as .（ ）
- The process of recording transactions in the journal is termed .（ ）
- Net income will result during a time period when: （ ）
- Which of the following events is not recorded in the accounting records? （ ）
- A building is offered for sale at $500,000 but is currently assessed at $400,000. The purchaser of the building believes the building is worth $475,000, but ultimately purchases the building for $450,000. The purchaser records the building at （ ）
- Performing services on account will have the following effects on the components of the basic accounting equation: （ ）
- If the assets of a company increase by $100,000 during the year and its liabilities increase by $35,000 during the same year, then the change in equity of the company during the year must have been: （ ）
- The use of computers in recording business events （ ）
- Communication of economic events is the part of the accounting process that involves （ ） .
- Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction? （ ）
- The process of recording transactions has become more efficient because （ ）
- Accountants refer to an economic event as a （ ）.
- Basic accounting addresses introduction to the concepts and principles of the accounting process, the technical and procedural aspects of preparing external financial statements.( ）
- The primary function of financial accounting is to provide useful financial information to external users of the business enterprise. ( ）
答案:对
答案:对
答案:错
答案:错
答案:对
答案:错
答案:错
答案:对
答案:对
答案:assess the total assets’ performances###evaluate the financial structure
答案:help their checking of financial statements.###all of the above###help their analysis of financial statements###help their understanding of financial statements
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