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Finance > QUESTIONS & ANSWERS > FIN 3716 ch. 2 (updated) (All)

FIN 3716 ch. 2 (updated)

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FIN 3716 ch. 2 (updated) Multiple Choice Questions 1. The financial statement summarizing the value of a firm's equity on a particular date is the: a. income statement. B. balance sheet. c. state ... ment of cash flows. d. cash flow statement. e. dividend statement. SECTION: 2.1 TOPIC: BALANCE SHEET TYPE: DEFINITIONS 2. A current asset is best defined as: a. an asset, such as equipment, that is currently owned by a firm. b. an asset the firm expects to own within the next year. C. an asset which is expected to be converted into cash within the next year. d. the amount of cash on hand the firm currently shows on its balance sheet. e. the market value of the inventory currently owned by the firm. SECTION: 2.1 TOPIC: CURRENT ASSETS TYPE: DEFINITIONS 3. Net working capital is defined as: a. total liabilities minus shareholders' equity. b. current liabilities minus shareholders' equity. c. fixed assets minus long-term liabilities. d. total assets minus total liabilities. E. current assets minus current liabilities. SECTION: 2.1 TOPIC: NET WORKING CAPITAL TYPE: DEFINITIONS 39. When you are making a financial decision, the most relevant tax rate is the _____ rate. a. averageb. fixedC. marginald. totale. variable SECTION: 2.3TOPIC: MARGINAL TAX RATETYPE: CONCEPTS [Show More]

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