Q1: Normally, permanent present assets need to be sponsor by:A. Long-term funds.B. Temporary funds.C. Obtained funds.D. Internally generated funds.

You are watching: The concept of a self-liquidating asset implies that

Correct answer: A. Irreversible funds.

Q2: an aggressive, risk-oriented firm will likely:A. Loaned long-term and carry low levels of liquidity.B. Loaned short-term and also carry low levels that liquidity.C. Borrow long-term and also carry high levels of liquidity.D. Lend short-term and also carry high level of liquidity.Correct answer: B. Borrow short-term and carry low levels the liquidity.

Q3: The ide of a self-liquidating asset suggests that:A. The functioning capital associated with a product will be liquidated within a one-year period.B. All the product will certainly be sold, receivables collected, and bills paid end the time duration specifiedC. Assets linked with the production of a product will be liquidated end the amortized lthe assets. Ife of

D. Self-liquidating assets will be sponsor by irreversible sources the capital.Correct answer: B. All the product will certainly be sold, receivables collected, antime duration specified. D receipt paid over the

Q4: when actual sales are better than forecasted sales:

A. Inventory will certainly increase.B. Production schedules could have to it is in revised downward.C. Account receivable will certainly decrease.D. Inventory will decrease and accounts receivable will increase.Correct answer: D. Inventory will certainly decrease and also accounts receivable will increase.

Q5: The an essential initial element in developing pro forma explanation is:A. A cash budget.B. An earnings statement.C. A sales forecastD. A collection schedule.Correct answer: C. A sales forecast

Q6: Ideally, sales projections must be obtained from:A. An external viewpoint.B. An interior viewpoint.C. Both internal and external viewpoints.D. The marketing department.Correct answer: C. Both internal and external viewpoints.

Q7: compelled production during a planning duration will count on the:A. Price of start inventory of products.B. Credit transaction sales throughout the period.

Correct answer: B. Profit margin and asset turnover

Q11: Maximization that shareholder wealth is a concept in which:A. Increased income are of main importance.B. Increased cash flows room of main importance.C. Enhanced dividends space of primary importance.D. Enhanced share price is of primary importance.Correct answer: D. Increased share price is of main importance.

Q12: A copy, group is not:A. Owned by shareholder who gain the privilege of restricted liability.B. Conveniently divisible between owners.C. A separate legal entity v perpetual life.D. A separate legal entity with restricted life.Correct answer: D. A separate legal reality with limited life.Q13: preferred share dividend ____ earnings accessible to usual shareholders.A. IncreaseB. DecreaseC. Due not effectD. Not sufficient information come tellCorrect answer: B. Decrease

Q14: as soon as a corporation supplies the financial markets to raise brand-new funds, the sale of securities is made in the:

A. Major market.B. An additional market.C. On-line market.D. Third market.Correct answer: A. Main market.

See more: Which Of The Following Best Describes Cost Allocation? ? A) A

Q15: In order come estimate production requirements, we:A. Add beginning inventory to projected sales in units and also subtract wanted ending inventory.B. Add projected sales in units to wanted ending inventory and subtract start inventory.C. Include beginning list to wanted ending inventory and divide by two.D. Add beginning inventory to desired ending inventory and also subtract projected sales in units.Correct answer: B. Include projected sales in devices to preferred ending inventory and also subeginning inventory. Btract