Finance 100 Week 11 Quiz .Question and complete answers.

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Assume a firm's production process requires an average of 80 days to go from raw materials to finished products and another 40 days before the finished goods are sold. If the accounts receivable cyc... le is 70 days and the accounts payable cycle is 80 days, what would the operating cycle be? Selected Answer: 110 days Correct Answer: 110 days Response Feedback: Good work  Question 2 2.5 out of 2.5 points In June, Erie Plastics had an ending cash balance of $35,000. In July, the firm had total cash receipts of $40,000 and total cash disbursements of $50,000. The minimum cash balance required by the firm is $25,000. At the end of July, Erie Plastics had Selected Answer: An excess cash balance of $0 Correct Answer: An excess cash balance of $0 Response Feedback: Good work  Question 3 This study source was downloaded by 100000823250788 from CourseHero.com on 05-07-2021 15:03:38 GMT -05:00 https://www.coursehero.com/file/52059203/Finance-100-Week-11-Quiz-docx/ This study resource was shared via CourseHero.com 2.5 out of 2.5 points When determining the operating cycle, which of the following components reduce the length of the cycle? Selected Answer: increases in the accounts payable period Correct Answer: increases in the accounts payable period Response Feedback: Good work  Question 4 2.5 out of 2.5 points Which of the following would not normally be discussed when describing a firm's operating cycle? Selected Answer: acquiring financing Correct Answer: acquiring financing Response Feedback: Good work  Question 5 2.5 out of 2.5 points Which of the following is not an advantage of short-term borrowing? Selected Answer: frequent renewals Correct Answer: frequent renewals Response Feedback: Good work  Question 6 2.5 out of 2.5 points A compensating balance on a bank loan effectively ____________ the cost of the loan. Selected Answer: raise This study source was downloaded by 100000823250788 from CourseHero.com on 05-07-2021 15:03:38 GMT -05:00 https://www.coursehero.com/file/52059203/Finance-100-Week-11-Quiz-docx/ This study resource was shared via CourseHero.com s Correct Answer: raise s Response Feedback: Good work  Question 7 2.5 out of 2.5 points Which of the following short-term sources of funds is available only to the financially strongest concerns? Selected Answer: commercial paper Correct Answer: commercial paper Response Feedback: Good work  Question 8 2.5 out of 2.5 points If a firm has positive net working capital, the current ratio is: Selected Answer: greater than one Correct Answer: greater than one Response Feedback: Good work  Question 9 2.5 out of 2.5 points In order to borrow $100,000 for a 10% loan on discount basis, the firm will actually have to borrow: Selected Answer: $111,1 11 Correct Answer: $111,1 11 This study source was downloaded by 100000823250788 from CourseHero.com on 05-07-2021 15:03:38 GMT -05:00 https://www.coursehero.com/file/52059203/Finance-100-Week-11-Quiz-docx/ This study resource was shared via CourseHero.com Response Feedback: Good work  Question 10 2.5 out of 2.5 points Which would not be likely to be accepted as collateral for an inventory loan? Selected Answer: vegetables at a grocery store Correct Answer: vegetables at a grocery store Response Feedback: Good work  Question 11 2.5 out of 2.5 points The process of allocating funds among competing investment opportunities is referred [Show More]

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