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FIN 100 Milestone 1 Questions and Answers Rated A+

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FIN 100 You passed this Milestone - HEADMAN 14 questions were answered correctly. 13 questions were answered incorrectly. Which method of depreciation calculation gives a company an equal tax bene... fit from one year to the next?  Straight line  Activity-based  Salvage  Declining balance CONCEPT Tax Considerations 2 Why are ethical issues complicated for businesses that operate in the global economy?  Because they tend to have more employees.  Because their employees won't know what the laws are in other countries.  Because different cultures have different norms and values.  Because they don't have as much moral character as small, local businesses. CONCEPT Ethics: An Overview 3 Lucas is worried about his company's short-term viability. What type of financial statement should he look at?  Balance sheet  Cash flow statement  Income statement  Statement of changes in equity CONCEPT Introducing Financial Statements 4 Under GAAP, how would the sale of company-owned land be accounted for on the statement of cash flows?  As a decrease in cash flow from operations  As a decrease in cash flow from financing  As an increase in cash flow from operations  As an increase in cash flow from investment CONCEPT The Statement of Cash Flows 5 What is the recent trend of algorithmic trading criticized for?  Being too transparent  Increasing market volatility  Over-extending credit  Improving market liquidity CONCEPT Trends and Issues in Finance 6 Georgia is interested in selling her company. Before seeking a buyer, she wants her income statements to show a trend of increasing gross profits. How can she achieve her goal?  Reduce net sales  Reduce taxes paid  Reduce operating expense  Reduce cost of goods sold CONCEPT The Income Statement 7 Under what circumstance would agency conflict be most likely to increase?  When owners are separated from the business.  When the incentives of a manager align with those of owners.  When owners are very close to the business.  When oversight by the board is adequate. CONCEPT Agency and Conflicts of Interest 8 The purpose of a pro forma balance sheet is to __________.  prepare for a financial audit  analyze historical data  compare previous accounting periods  analyze the effects of a sales forecast CONCEPT Forecasting the Balance Sheet 9 When finalizing a pro forma income statement, what should be considered in addition to the sales forecast?  Foreca [Show More]

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