财务管理基础 英文版 选择题.doc

《财务管理(英）》课程期末考试试卷标准（参考）答案及评分标准Part 1: Choice Questions (16 questions, 1 point each, 16 points total)Part 2: Calculation Questions (3 questions, 8 points each, 24 points total)1.Answer:CAPM is: E(R i) = R f + [E(R M) – R f] × iSubstituting the values we are given, we find:E(R i) = .05 + (.14 – .05)(1.3) = .1670 or 16.70% (4 points)P0 = D0×(1+g)/(R-g) = 2×1.08/(16.7%-8%)=$24.83 ( 4 points)2.Answer: (10 points)The economic order quantity is:EOQ = [(2T × F)/CC]1/2EOQ = [2(52)(4,000)($2,600)/$40]1/2EOQ = 5,2003.Answer: (8 points)Bond value = 50×(P/A, 6%, 40) + 1000×(P/s, 6%,40 )=50×15.0463 ＋1000×0.0972=$849.54Part 3: Comprehensive Questions (4 questions, 15 points each, 60 points total ) 1.Answer:1)Compute the following ratios: ( 7 points)Current ratio: = 11,000/10,000 =1.1Total debt ratio (10,000+12,000)/ 38,000 = 57.9%Total asset turnover = 10,400/ 38,000 = 27.4%Profit margin = 2,327/10,400 = 22.375%Equity multiplier = 38,000 / 16,000 = 2.375ROA = 2327 / 38000 = 6.12%ROE = 2327 / 16000 = 14.54%2)Using Du Pont Identity to compute the ROE ( 4 points)ROE = Profit margi n×Equity multiplier×Total asset turnover= 22.375%×2.375 ×27.4% = 14.56%3)( 4 points)The plowback ratio, b, is one minus the payout ratio, so:b = 1 – .20 = .80we can use the sustainable growth rate equation to get:Sustainable growth rate = (ROE × b) / [1 – (ROE × b)]= [0.1454(.80)] / [1 – 0.1454(.80)]= .1317 or 13.17%2.Answer:( 15 points)3.Answer:1) Annual depreciation = $618,000 ÷ 3 = $206,000Taxes = ($265,000 - $206,000) ⨯ .34 = $20,060OCF = $265,000 – $20,060 = $244,940 (4 points)2) After tax Salvage value = $60,000 ⨯ (1 - .34)] = 39,600 ( 3 points)CF 0 = -$618,000 + (-$23,000) = -$641,000 CF1—CF2 = $244,940CF 3 = $244,940 + [$60,000 ⨯ (1 - .34)] + $23,000 = $307,5404)321)09.1(540,307$)09.1(940,244$)09.1(940,244$000,641$NPV +++++-== $27,354.00 ( 4 points)4. (15 points)The Capital Structure QuestionCapital Structure and the Cost of CapitalThe Effect of Financial LeverageThe Basics of Financial LeverageCorporate Borrowing and Homemade Leverage ( 3 points)Case I: M&M Capital Structure and the Cost of Equity Capital ( 3 points)M&M Proposition I: The Pie ModelThe Cost of Equity and Financial Leverage: M&M Proposition II Business and Financial RiskCase II: M&M Propositions I and II with Corporate Taxes ( 4 points)The Interest Tax ShieldTaxes and M&M Proposition ITaxes, the WACC, and Proposition IICase III: M&M Propositions I and II with Corporate Taxes and Bankruptcy Costs ( 4 points)Direct Bankruptcy Costs Indirect Bankruptcy CostsTaxes and Bankruptcy Costs , M&M Proposition ITaxes and Bankruptcy Costs , the WACC, Proposition IISummery: Optimal Capital Structure ( 1 point)Optimal Capital Structure and the Cost of Capital。

财务英语试题及答案一、选择题（每题2分，共20分）1. What is the term for the process of recording, summarizing, and reporting financial transactions?A. BudgetingB. AccountingC. AuditingD. Forecasting答案：B2. Which of the following is a financial statement that showsa company's financial position at a specific point in time?A. Income StatementB. Balance SheetC. Cash Flow StatementD. Statement of Retained Earnings答案：B3. The difference between the purchase price and the fair market value of an asset is known as:A. DepreciationB. AmortizationC. GoodwillD. Capital Gains答案：C4. What is the term for the systematic allocation of the cost of a tangible asset over its useful life?A. DepreciationB. AmortizationC. AccrualD. Provision答案：A5. Which of the following is not a type of revenue recognition?A. Cash basisB. Accrual basisC. Installment methodD. All of the above答案：D6. The process of estimating the cost of completing a project is known as:A. BudgetingB. Cost estimationC. Project managementD. Cost accounting答案：B7. Which of the following is a non-current liability?A. Accounts payableB. Wages payableC. Long-term debtD. Income tax payable答案：C8. The term used to describe the process of adjusting the accounts at the end of an accounting period is:A. Closing the booksB. JournalizingC. PostingD. Adjusting entries答案：D9. What is the term for the financial statement that shows the changes in equity of a company over a period of time?A. Balance SheetB. Income StatementC. Statement of Changes in EquityD. Cash Flow Statement答案：C10. The process of verifying the accuracy of financial records is known as:A. BudgetingB. AuditingC. ForecastingD. Valuation答案：B二、填空题（每空1分，共10分）1. The __________ is the process of determining the value of an asset or liability.答案：valuation2. A __________ is a type of financial instrument that represents a creditor's claim on a company's assets.答案：bond3. The __________ is the difference between the cost of an asset and its depreciation.答案：book value4. __________ is the process of converting non-cash items into cash equivalents.答案：Liquidation5. A __________ is a financial statement that provides information about a company's cash inflows and outflows during a specific period.答案：Cash Flow Statement6. The __________ is the process of estimating the useful life of an asset.答案：depreciation schedule7. __________ is the practice of recording revenues and expenses when they are earned or incurred, not when cash is received or paid.答案：Accrual accounting8. __________ is the process of recording transactions in the order they are received.答案：Journalizing9. __________ is the practice of matching expenses with the revenues they helped to generate.答案：Matching principle10. A __________ is a document that provides evidence of a transaction.答案：voucher三、简答题（每题5分，共20分）1. What are the main components of a balance sheet?答案：The main components of a balance sheet are assets, liabilities, and equity.2. Explain the concept of "double-entry bookkeeping."答案：Double-entry bookkeeping is a system of recording financial transactions in which every entry to an account requires a corresponding and opposite entry to another account, ensuring that the total of debits equals the total of credits.3. What is the purpose of an income statement?答案：The purpose of an income statement is to summarize a company's revenues, expenses, and profits or losses over a specific period of time.4. Describe the role of a financial controller in anorganization.答案：A financial controller is responsible for overseeing the financial operations of an organization, including budgeting, financial reporting, and ensuring compliance with financial regulations and policies.四、论述题（每题15分，共30分）1. Discuss the importance of financial planning in business management.答案：Financial planning is crucial in business management as it helps in setting financial goals。

第一章1 CORRECTWhich of the following are microeconomic variables that help define and explain the discipline of finance? DA) risk and returnB) capital structureC) inflationD) all of the aboveFeedback: All of the above are relevant in explaining finance.2 CORRECTOne primary macroeconomic variable that helps define and explain the discipline of finance? CA) capital structureB) inflationC) technologyD) riskFeedback: Technology is very important in explaining the field of finance.3 CORRECTThe money markets deal with _________. BA) securities with a life of more than one yearB) short-term securitiesC) securities such as common stockD) none of the aboveFeedback: The money markets are concerned with short-term securities, those with a life less than one year.4 CORRECTThe ability of a firm to convert an asset to cash is called ___A_________.A) liquidityB) solvencyC) returnD) marketabilityFeedback: Liquidity also means how close an asset is to cash.5 CORRECTEarly in the history of finance, an important issue was: AA) liquidityB) technologyC) capital structureD) financing optionsFeedback: Maintaining liquidity was a major concern historically.6 INCORRECTThe __________C_________ is the most common form of business organization in the U.S.A) corporationB) partnershipC) sole proprietorshipD) none of the aboveFeedback: There are more sole proprietorships than any other form of business organization.7 CORRECTThe _________C___________ has more sales in dollars than any other form of business organization.A) sole proprietorshipB) partnershipC) corporationD) none of the aboveFeedback: The corporation is the most important in terms of dollars.8 CORRECTOne major disadvantage of the sole proprietorship is _____B___________.A) simplicity of decision-makingB) unlimited liabilityC) low operational costsD) none of the aboveFeedback: The owners of a sole proprietorship are personally liable.9 CORRECTThe appropriate firm goal in a capitalist society is ______B__________.A) profit maximizationB) shareholder wealth maximizationC) social responsibilityD) none of the aboveFeedback: The goal is to maximize the wealth of shareholders.10 CORRECTThe agency problem will occur in a business firm if the goals of ______C______ and shareholders do not agree.A) investorsB) the publicC) managementD) none of the above第二章Feedback: The goals of management may be different from those of shareholders.The accounting statements that a firm is required to file include all but one of these. BA) Balance SheetB) Statement of Accounts ReceivableC) Income StatementD) Statement of Cash FlowsFeedback: The required statements include the income statement, balance sheet and statement of changes in cash flows. The statement of changes in owners equity (or retained earnings) is also required by Generally Accepted Accounting Principles but is not covered in this text.2 CORRECTThe _______A________ shows the firm's operating results over a period of time.A) Income StatementB) Statement of Cash FlowsC) Balance SheetD) None of the aboveFeedback: The Income Statement represents a moving picture of a firm's revenues and expenses.3 CORRECTAll of the following except one are tax-deductible expenses. CA) interest expenseB) depreciationC) common stock dividendsD) income taxesFeedback: Common stock dividends are not tax deductible to a firm.4 CORRECTAll of the following are non-operating expenses except ______B_______.A) interest expenseB) cost of goods soldC) preferred stock dividendsD) taxesFeedback: The cost of goods sold is an operating expense.5 CORRECTBondholders receive _____C________ from the business firm.A) preferred dividend paymentsB) common stock paymentsC) interest paymentsD) royaltiesFeedback: Bondholders are typically paid interest semi-annually.6 CORRECTThe ratio of net income to common shares outstanding is called _____B_________.A) price/earnings ratioB) earnings per shareC) dividends per shareD) none of the aboveFeedback: This is called the earnings per share (EPS).7 CORRECTUsually, firms with high price/earnings ratios are _____A_______ firms.A) growthB) decliningC) matureD) none of the aboveFeedback: A high p/e ratio indicates a firm with strong growth prospects8 CORRECTOne of the limitations of the _____C_______ is that it is based on historical costs.A) income statementB) statement of cash flowsC) balance sheetD) none of the aboveFeedback: The balance sheet uses historical costs.9 INCORRECTA source of funds is a: DA) decrease in a current assetB) decrease in a current liabilityC) increase in a current liabilityD) a and c aboveFeedback: A decrease in current assets is equivalent to an increase in current liabilities.10 INCORRECTShort-term financing for a business firm includes: BA) bondsB) accounts payableC) stockholder's equityD) mortgagesFeedback: The other three answers represent long-term financing.第三章Trend analysis allows a firm to compare its performance to: DA) other firms in the industryB) other time periods within the firmC) other industriesD) all of the aboveFeedback: Trend analysis gives an analyst a long-term perspective. As a security analyst and a portfolio manager with Oppenheimer Capital, Dick Glasebrook spoke to a Senior Finance Managers’ Meeting at the Boeing Company on May 4, 1999. He said it is one thing to compare afirm’s performan ce against competitors within the same industry. But investors are not limited to specific industries. In fact, investors seek to diversify their investments across many different industries. So management should also compare performance to any well run company--both in and outside of their industry.2Ratio analysis allows a firm to compare its performance to: DA) other firms in the industryB) other time periods within the firmC) other industriesD) all of the aboveFeedback: Trend analysis gives an analyst a long-term perspective. As a security analyst and a portfolio manager with Oppenheimer Capital, Dick Glasebrook spoke to a Senior Finance Managers’ Meeting at the Boeing Company on May 4, 1999. He said it is one thing to compare a firm’s performance against competitors within the same industry. But investors are not limited to specific industries. In fact, investors seek to diversify their investments across many different industries. So management should also compare performance to any well run company--both in and outside of their industry.3Usually, a firm's suppliers are most interested in its ___D_____ ratios.A) profitabilityB) debtC) asset utilizationD) liquidityFeedback: The suppliers are most interested in getting paid, as shown by the liquidity of the firm.4 CORRECT__________D_____ would be most interested in a firm's debt utilization ratios.A) bondholdersB) stockholdersC) short-term creditorsD) Both A and BFeedback: Debt is indicated by a firm issuing bonds but is also a function of the debt to equity relationship or the degree of financial leverage. Both bond holders and stockholders are interested in this relationship although frof opposing viewpoints.5 CORRECTThe _______C______ ratio indicates the return firm shareholders are earning.A) return on assetsB) return on investmentC) return on equityD) net profit marginFeedback: The shareholders represent equity, or ownership in the firm.6 CORRECTWhich of the following is an example of a profitability ratio? CA) Quick ratioB) Average collection periodC) Return on equityD) Times interest earnedFeedback: This is the only profitability ratio that is listed. All profitability ratios have net income in the denominator.7Total asset turnover will indicate if there is a problem with the ___C______ ratio.A) debt to assetsB) times interest earnedC) fixed asset turnoverD) currentFeedback: Fixed asset turnover is part of total asset turnover.8 CORRECTAll of the following are asset utilization ratios except: DA) average collection periodB) inventory turnoverC) receivables turnoverD) return on assetsFeedback: Return on assets is a profitability ratio. Any ratio with net income in the denominator is a profitability ratio.9 CORRECTIf a firm's debt ratio is 55%, this means ____C__ of the firm's assets are financed by equity financing.A) 55%B) 50%C) 45%D) not enough information to answer questionFeedback: The equity portion plus the debt portion must add up to 100%.10 CORRECTAll of the following can present problems for ratio analysis except: DA) inflationB) inventory accounting methodsC) disinflationD) all of the aboveFeedback: These all may cause problems.第四章Planning for future growth is called: CA) capital budgetingB) working capital managementC) financial forecastingD) none of the aboveFeedback: This involves looking ahead to the future.2 INCORRECTWhich one of the following is NOT a tool of financial forecasting? BA) cash budgetB) capital budgetC) pro forma balance sheetD) pro forma income statementFeedback: The other three are all tools used by an analyst.3 CORRECTThe first step in developing a pro forma income statement is to: AA) build a sales forecastB) determine the production scheduleC) determine cost of goods soldD) none of the aboveFeedback: A sales forecast begins the process.4 INCORRECTPro forma statements are _B______ statements.A) actualB) projectedC) a previous year'sD) none of the aboveFeedback: Pro forma statements are based on estimates or projections.5 INCORRECTAll of the following compose cost of goods sold except ______D__________.A) raw materialB) laborC) overheadD) all of the above are part of cost of goods soldFeedback: The cost of good sold involves all three of these items.6 INCORRECTFinancial managers use the ______B_______ to plan for monthly financing needs.A) capital budgetB) cash budgetC) pro forma income statementD) none of the aboveFeedback: The cash budget allows for planning cash needs.7 INCORRECTThe payments that a firm collects from its customers are called _______C________.A) cash disbursementsB) cash outflowsC) cash receiptsD) none of the aboveFeedback: Cash receipts represent cash coming into the firm.8 INCORRECTExamples of cash disbursements are all but _________B________.A) payment for materials purchasedB) collection of accounts receivableC) payment of dividendsD) payment of taxesFeedback: The collection of accounts receivable is an example of a cash receipt, not a cash disbursement.9 CORRECTIn developing the pro forma balance sheet, we get common stock from __________A_______.A) the firm's previous balance sheetB) the firm's cash budgetC) the firm's income statementD) none of the aboveFeedback: Common stock appears on the balance sheet.10 INCORRECTThe percent of sales method of financial forecasting shows us the relationship between________D___ and financing needs.A) changes in the level of liabilitiesB) changes in the level of assetsC) changes in debtD) changes in the level of salesFeedback: It compares the relationship between balance sheet items and sales.第五章An example of a semi-variable cost is: DA) rentB) raw materialC) depreciationD) utilitiesFeedback: The other three represent fixed or variable costs.2 CORRECT_________A____ is the point at which firm profit is equal to zero.A) breakevenB) operating breakevenC) financial leverageD) combined breakevenFeedback: This is the point where the firm's revenues equal its expenses.3 INCORRECTIn breakeven analysis, if fixed costs rise, then the breakeven point will _____B_____.A) fallB) riseC) stay the sameD) none of the aboveFeedback: This implies that a larger quantity will have to be sold in order to break even.4 INCORRECTIn the breakeven formula, Price - Variable Cost is called the___C__________.A) breakeven pointB) leverageC) contribution marginD) none of the aboveFeedback: This implies that a larger quantity will have to be sold in order to cover the additional fixed costs and still break even.5 INCORRECTWhich of the following types of firms may operate with high operating leverage? BA) a doctor's officeB) an auto manufacturing facilityC) a mental health clinicD) none of the above would have high operating leverageFeedback: This implies a high break-even point and high operating expenses.6 INCORRECTThe __________C__________ is the percentage change in operating income that results from a percentage change in sales.A) degree of financial leverageB) breakeven pointC) degree of operating leverageD) degree of combined leverageFeedback: This is called the degree of operating leverage (DOL).7 CORRECTIf interest expenses for a firm rise, we know that firm has taken on more ______A________.A) financial leverageB) operating leverageC) fixed assetsD) none of the aboveFeedback: Financial leverage refers to interest expense on debt.8 INCORRECTThe ________B________ is the percentage change in earnings per share that results from a percentage change in operating income.A) degree of combined leverageB) degree of financial leverageC) breakeven pointD) degree of operating leverageFeedback: This is known as the degree of financial leverage (DFL).9 INCORRECTCombined leverage is the percentage change in relationship between sales and ______C______.A) operating incomeB) operating leverageC) earnings per shareD) breakeven pointFeedback: This combines operating leverage and financial leverage.10 INCORRECTA highly leveraged firm is ____B______ risky than its peers.A) lessB) moreC) the sameD) none of the aboveFeedback: Leverage is equivalent to risk, because it implies a higher level of fixed costs.第六章Working capital management involves the financing and management of the __C_____ assets of the firm.A) fixedB) totalC) currentD) none of the aboveFeedback: Working capital management deals with the financing and management of currentassets.2 INCORRECTAn asset sold at the end of a specified time period is called a ______B_______ asset.A) temporary currentB) self-liquidatingC) currentD) permanent currentFeedback: A self-liquidating asset is one that will be sold after a certain amount of time.3 CORRECTFixed assets are usually financed with _______A______ funds.A) long-termB) short-termC) permanentD) none of the aboveFeedback: Fixed assets are by definition long-term assets.4 INCORRECT_________B_____ is usually used to finance self-liquidating assets.A) Long-term financingB) Short-term financingC) Permanent financingD) none of the aboveFeedback: These are short-term or temporary assets.5 INCORRECTShort-term interest rates, in a normal economy, are generally ____C____ than long-term rates.A) higherB) the sameC) lowerD) none of the aboveFeedback: Long-term interest rates are normally higher than short-term interest rates to compensate for uncertainty or risk.6 INCORRECTThe expectations hypothesis says that _____B____ interest rates are a function of _______ interest rates.A) short-term; long-termB) long-term; short-termC) short-term; short-termD) none of the aboveFeedback: This theory says that long-term interest rates reflect the average of short-term expected rates.7 INCORRECTInsurance companies would tend to invest in ______C____ securities.A) short-termB) intermediate termC) long-termD) not enough information to answerFeedback: An insurance company would prefer long-term securities because they are more conservative or safer.8 INCORRECTThe _________D_____ theory says that investors must be paid a premium to hold long-term securities.A) expectations hypothesisB) time value theoryC) segmentationD) liquidity premiumFeedback: This is the liquidity premium.9 INCORRECTShort-term financing plans with high liquidity have: BA) high return and high riskB) moderate return and moderate riskC) low profit and low riskD) none of the aboveFeedback: This is known as a "middle-of-the-road" approach.10 INCORRECTLong-term financing plans with low liquidity have: BA) high return and high riskB) moderate return and moderate riskC) low return and low riskD) none of the aboveFeedback: This is also known as a "middle-of-the-road" approach.第七章The transaction motive for holding cash is for BA) a safety cushionB) daily operating requirementsC) compensating balance requirementsD) none of the aboveFeedback: This is money for everyday transactions.2 CORRECTWhich of the following motives for holding cash is required by the bank before loaning money? AA) compensating balance motiveB) transactions motiveC) precautionary motiveD) none of the aboveFeedback: This can be considered a form of collateral.3 INCORRECTThe difference between the cash balance on the firm's books and the balance shown on the bank's books is called: BA) the compensating balanceB) floatC) a safety cushionD) none of the aboveFeedback: Float implies that it takes time for checks to clear.4 CORRECTElectronic funds transfer has _____A_____ the use of float.A) reducedB) increasedC) had no effect onD) none of the aboveFeedback: Electronic funds transfer (EFT) has moved cash more quickly and reduced float.5 INCORRECTThe most utilized marketable security by most firms is the: DA) Treasury bondB) Agency securityC) Certificate of DepositD) Treasury billFeedback: Treasury bills (T-Bills) are very safe, popular investments.6 INCORRECTOf the following marketable securities, which are guaranteed by the Federal government? DA) agency securitiesB) negotiable certificates of depositC) banker's acceptancesD) none of the aboveFeedback: None of these are backed by the government.7 INCORRECTThe 5 C's of credit include: DA) conditionsB) collateralC) characterD) all of the aboveFeedback: The other two C's of credit are capacity and capital.8 INCORRECT BThe use of safety stock by a firm will:A) reduce inventory costsB) increase inventory costsC) have no effect on inventory costsD) none of the aboveFeedback: Safety stock is extra inventory a firm keeps in case of unforseen circumstances.9 INCORRECTAll of these factors are used in credit policy administration except: CA) credit standardsB) terms of tradeC) dollar amount of receivablesD) collection policyFeedback: The other three choices are the primary policy variables to consider.10 CORRECTFirms aim to hold ___A___ cash balances since cash is a non-interest earning asset.A) lowB) averageC) highD) none of the aboveFeedback: A firm does not want to keep too much cash on hand because it will lose interest (by not keeping the money in a bank).第八章The largest provider of short-term credit for a business is: BA) banking organizationsB) suppliers to the firmC) commercial paperD) EurodollarsFeedback: This is also known as trade credit.2 INCORRECTThe number of days until the firm is past due to a supplier is called the: CA) discount periodB) term to creditC) payment periodD) none of the aboveFeedback: The payment period is the number of days a firm has to pay its bill.3 INCORRECTIf a firm is given trade credit terms of 2/10, net 30, then the cost of the firm failing to take the discount is: CA) 2%B) 30%C) 36.72%D) 10%Feedback: This is calculated using formula 8-1 in this chapter.4 CORRECTThe interest rate given by a bank to its most creditworthy customers is the: AA) prime rateB) LIBOR rateC) federal funds rateD) discount rateFeedback: This is the "best" interest rate charged to people with excellent credit.5 INCORRECTWhich of the following types of bank loans generally have the highest effective rate of interest? DA) simple interest loanB) discount interest loanC) loan with a compensating balanceD) installment loanFeedback: Installment loans tend to be the most expensive.6 INCORRECTIf a firm needs to borrow $100,000, at 8% interest, to finance working capital needs and a 20% compensating is required, then the firm should borrow ____C______.A) $100,000B) $80,000C) $125,000D) $108,000Feedback: The formula to calculate this is: amount needed/(1-c), where c = the compensating balance percentage.7 CORRECTIf a bank offers a firm a simple interest loan of $1000 for 120 days at a cost of $60 interest, what is the effective rate of interest on the loan? AA) 18.00%B) 6.00%C) 20.00%D) none of the aboveFeedback: This is calculated by using formula 8-2 in this chapter.8 INCORRECTIf a company raises money to finance short-term needs by selling its accounts receivable to another party, this is called ___________. CA) pledgingB) warehousingC) factoringD) none of the aboveFeedback: Factoring means selling the accounts receivable outright.9 INCORRECTThe most restrictive policy for using inventory as collateral for short-term borrowing is called: BA) blanket inventory lienB) warehousing inventoryC) trust receiptD) factoringFeedback: This is a complex method of inventory financing wherein the lender takes control of the inventory.10 CORRECTA type of accounts receivable financing where a firm uses its receivables as collateral is called: AA) pledgingB) securitizationC) factoringD) warehousingFeedback: Pledging means using accounts receivable as collateral.第九章Both the future and present value of a sum of money are based on: CA) interest rateB) number of time periodsC) both a and bD) none of the aboveFeedback: These two factors are used in time value of money calculations.2 INCORRECTAn annuity is ___________________. CA) more than one paymentB) a series of unequal but consecutive paymentsC) a series of equal and consecutive paymentsD) a series of equal and non-consecutive paymentsFeedback: An annuity is a stream of equal payments to be received in the future.3 CORRECTIf you have $1000 and you plan to save it for 4 years with an interest rate of 10%, what is the future value of your savings? AA) $1464.00B) $1000.00C) $1331.00D) cannot be determinedFeedback: This is calculated by using formua 9-1 in this chapter.4 INCORRECTTime value of money is an important finance concept because: DA) it takes risk into accountB) it takes time into accountC) it takes compound interest into accountD) all of the aboveFeedback: Time value of money incorporates all of these concepts.5 INCORRECTThe present value of a dollar to be received in the future is: CA) more than a dollarB) equal to a dollarC) less than a dollarD) none of the aboveFeedback: The reason is because you can earn interest on the money.6 CORRECTThe future value of a dollar that you invest today is: AA) more than a dollarB) equal to a dollarC) less than a dollarD) none of the aboveFeedback: Again, the reason is because the money can earn interest.7 INCORRECTThe future value of an annuity is: CA) less than each annuity paymentB) equal to each annuity paymentC) more than each annuity paymentD) none of the aboveFeedback: The reason has to do with compound interest (or interest earning more interest).8 INCORRECTThe concepts of present value and future value are:DA) directly related to each otherB) not related to each otherC) proportionately related to each otherD) inversely related to each otherFeedback: They are essentially opposite sides of a coin.9 INCORRECTIf you win the lottery and you choose to have your proceeds distributed to you over atwenty-year time period, with the first payment coming to you one year from today, which calculation would you use to calculate the worth of those proceeds to you today? DA) future value of a lump sumB) future value of an annuityC) present value of a lump sumD) present value of an annuityFeedback: This is shown by formula 9-4 in this chapter. But this is not a typical situation. Most lotteries (let’s say $1 Million over 20 years), will pay you the first payment today and $50,000 each year for the next 19 years. This is actually an “annuity due” which is not covered in this text. Y ou’d have to calculate the present value of the annuity for 19 years and add the initial $50,000 you received today.10 CORRECTYou have $1000 you want to save. If four different banks offer four different compounding methods for interest, which method should you choose to maximize your $1000? AA) compounded dailyB) compounded quarterlyC) compounded semi-annuallyD) compounded annuallyFeedback: The more often interest is compounded the faster it will grow because you will begin to earn interest on the interest sooner.第十章In valuing a financial asset, you use these variables: DA) present value of future cash flowsB) discount rateC) required rate of returnD) all of the aboveFeedback: All of these are needed in order to value an asset.2 CORRECTThe principal amount of a bond at issue is called: AA) par valueB) coupon valueC) present value of an annuityD) present value of a lump sumFeedback: This is also known as the face value or stated value.3 INCORRECT BIf a bond's value rises above its par value during its life, interest rates have:A) gone upB) gone downC) stayed the sameD) there is no correlation with interest ratesFeedback: There is an inverse relationship between bond prices and interest rates (or yields).4 INCORRECTThe basic "rent" that you are charged when you borrow money is called: CA) inflation premiumB) risk premiumC) real rate of returnD) none of the aboveFeedback: This is known as the opportunity cost in economics.5 INCORRECTAs time to maturity draws near, a bond's value approaches: BA) zeroB) parC) the coupon paymentD) none of the aboveFeedback: The bond price gets closer to its face value the closer it is to maturity (see figure 10-2 in this chapter).6 INCORRECTOne characteristic of preferred stock is that:DA) it has no maturity dateB) it is a hybrid security with characteristics of both common stock and debtC) it pays a fixed dividend paymentD) all of the aboveFeedback: Preferred stock is described by all of the above characteristics.7 CORRECTCommon stock that has no growth in dividends is valued as if it were: AA) preferred stockB) a bondC) an optionD) none of the aboveFeedback: It is treated the same as preferred stock.8 INCORRECT。

CHAPTER 5 THE MARKET FOR FOREIGN EXCHANGESUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTERQUESTIONS AND PROBLEMSQUESTIONS1. Give a full definition of the market for foreign exchange.Answer: Broadly defined, the foreign exchange (FX) market encompasses the conversion of purchasing power from one currency into another, bank deposits of foreign currency, the extension of credit denominated in a foreign currency, foreign trade financing, and trading in foreign currency options and futures contracts.2. What is the difference between the retail or client market and the wholesale or interbank market for foreign exchange?Answer: The market for foreign exchange can be viewed as a two-tier market. One tier is the wholesale or interbank market and the other tier is the retail or client market. International banks provide the core of the FX market. They stand willing to buy or sell foreign currency for their own account. These international banks serve their retail clients, corporations or individuals, in conducting foreign commerce or making international investment in financial assets that requires foreign exchange. Retail transactions account for only about 14 percent of FX trades. The other 86 percent is interbank trades between international banks, or non-bank dealers large enough to transact in the interbank market.3. Who are the market participants in the foreign exchange market?Answer: The market participants that comprise the FX market can be categorized into five groups: international banks, bank customers, non-bank dealers, FX brokers, and central banks. International banks provide the core of the FX market. Approximately 100 to 200 banks worldwide make a market in foreign exchange, i.e., they stand willing to buy or sell foreign currency for their own account. These international banks serve their retail clients, the bank customers, in conducting foreign commerce or making international investment in financial assets that requires foreign exchange. Non-bank dealers are large non-bank financial institutions, such as investment banks, mutual funds, pension funds, and hedge funds, whose size and frequency of trades make it cost- effective to establish their own dealing rooms to trade directly in the interbank market for their foreign exchange needs.Most interbank trades are speculative or arbitrage transactions where market participants attempt to correctly judge the future direction of price movements in one currency versus another or attempt to profit from temporary price discrepancies in currencies between competing dealers.FX brokers match dealer orders to buy and sell currencies for a fee, but do not take a position themselves. Interbank traders use a broker primarily to disseminate as quickly as possible a currency quote to many other dealers.Central banks sometimes intervene in the foreign exchange market in an attempt to influence the price of its currency against that of a major trading partner, or a country that it “fixes” or “pegs” its currency against. Intervention is the process of using foreign currency reser ves to buy one’s own currency in order to decrease its supply and thus increase its value in the foreign exchange market, or alternatively, selling one’s own currency for foreign currency in order to increase its supply and lower its price.4. How are foreign exchange transactions between international banks settled?Answer: The interbank market is a network of correspondent banking relationships, with large commercial banks maintaining demand deposit accounts with one another, called correspondent bank accounts. The correspondent bank account network allows for the efficient functioning of the foreign exchange market. As an example of how the network of correspondent bank accounts facilities international foreign exchange transactions, consider a U.S. importer desiring to purchase merchandise invoiced in guilders from a Dutch exporter. The U.S. importer will contact his bank and inquire about the exchange rate. If the U.S. importer accepts the offered exchange rate, the bank will debit the U.S. importer’s account for the purchase of the Dutch guilders. The bank will instruct its correspondent bank in the Netherlands to debit its correspondent bank account the appropriate amount of guilders and to credit the Dutch exporter’s bank account. The importer’s bank will then debit its books to offset the debit of U.S. importer’s account, reflecting the decrease in its correspondent bank account balan ce.5. What is meant by a currency trading at a discount or at a premium in the forward market?Answer: The forward market involves contracting today for the future purchase or sale of foreign exchange. The forward price may be the same as the spot price, but usually it is higher (at a premium) or lower (at a discount) than the spot price.6. Why does most interbank currency trading worldwide involve the U.S. dollar?Answer: Trading in currencies worldwide is against a common currency that has international appeal. That currency has been the U.S. dollar since the end of World War II. However, the euro and Japanese yen have started to be used much more as international currencies in recent years. More importantly, trading would be exceedingly cumbersome and difficult to manage if each trader made a market against all other currencies.7. Banks find it necessary to accommodate their clients’ needs to buy or sell FX forward, in many instances for hedging purposes. How can the bank eliminate the currency exposure it has created for itself by accommodating a client’s forward transaction?Answer: Swap transactions provide a means for the bank to mitigate the currency exposure in a forward trade. A swap transaction is the simultaneous sale (or purchase) of spot foreign exchange against a forward purchase (or sale) of an approximately equal amount of the foreign currency. To illustrate, suppose a bank customer wants to buy dollars three months forward against British pound sterling. The bank can handle this trade for its customer and simultaneously neutralize the exchange rate risk in the trade by selling (borrowed) British pound sterling spot against dollars. The bank will lend the dollars for three months until they are needed to deliver against the dollars it has sold forward. The British pounds received will be used to liquidate the sterling loan.8. A CD/$ bank trader is currently quoting a small figure bid-ask of 35-40, when the rest of the market is trading at CD1.3436-CD1.3441. What is implied about the trader’s beliefs by his prices?Answer: The trader must think the Canadian dollar is going to appreciate against the U.S. dollar and therefore he is trying to increase his inventory of Canadian dollars by discouraging purchases of U.S. dollars by standing willing to buy $ at only CD1.3435/$1.00 and offering to sell from inventory at the slightly lower than market price of CD1.3440/$1.00.9. What is triangular arbitrage? What is a condition that will give rise to a triangular arbitrage opportunity?Answer: Triangular arbitrage is the process of trading out of the U.S. dollar into a second currency, then trading it for a third currency, which is in turn traded for U.S. dollars. The purpose is to earn anarbitrage profit via trading from the second to the third currency when the direct exchange between the two is not in alignment with the cross exchange rate.Most, but not all, currency transactions go through the dollar. Certain banks specialize in making a direct market between non-dollar currencies, pricing at a narrower bid-ask spread than the cross-rate spread. Nevertheless, the implied cross-rate bid-ask quotations impose a discipline on the non-dollar market makers. If their direct quotes are not consistent with the cross exchange rates, a triangular arbitrage profit is possible.PROBLEMS1. Using Exhibit 5.4, calculate a cross-rate matrix for the euro, Swiss franc, Japanese yen, and the British pound. Use the most current American term quotes to calculate the cross-rates so that the triangular matrix resulting is similar to the portion above the diagonal in Exhibit 5.6.Solution: The cross-rate formula we want to use is:S(j/k) = S($/k)/S($/j).The triangular matrix will contain 4 x (4 + 1)/2 = 10 elements.¥SF £$Euro 138.05 1.5481 .6873 1.3112 Japan (100) 1.1214 .4979 .9498 Switzerland .4440 .8470U.K 1.90772. Using Exhibit 5.4, calculate the one-, three-, and six-month forward cross-exchange rates between the Canadian dollar and the Swiss franc using the most current quotations. State the forward cross-rates in “Canadian” terms.Solution: The formulas we want to use are:F N(CD/SF) = F N($/SF)/F N($/CD)orF N(CD/SF) = F N(CD/$)/F N(SF/$).We will use the top formula that uses American term forward exchange rates.F1(CD/SF) = .8485/.8037 = 1.0557F3(CD/SF)= .8517/.8043 = 1.0589F6(CD/SF)= .8573/.8057 = 1.06403. Restate the following one-, three-, and six-month outright forward European term bid-ask quotes in forward points.Spot 1.3431-1.3436One-Month 1.3432-1.3442Three-Month 1.3448-1.3463Six-Month 1.3488-1.3508Solution:One-Month 01-06Three-Month 17-27Six-Month 57-724. Using the spot and outright forward quotes in problem 3, determine the corresponding bid-ask spreads in points.Solution:Spot 5One-Month 10Three-Month 15Six-Month 205. Using Exhibit 5.4, calculate the one-, three-, and six-month forward premium or discount for the Canadian dollar versus the U.S. dollar using American term quotations. For simplicity, assume each month has 30 days. What is the interpretation of your results?Solution: The formula we want to use is:f N,CD= [(F N($/CD) - S($/CD/$)/S($/CD)] x 360/Nf1,CD= [(.8037 - .8037)/.8037] x 360/30 = .0000f3,CD= [(.8043 - .8037)/.8037] x 360/90 = .0030f6,CD= [(.8057 - .8037)/.8037] x 360/180 = .0050The pattern of forward premiums indicates that the Canadian dollar is trading at an increasing premium versus the U.S. dollar. That is, it becomes more expensive (in both absolute and percentage terms) to buy a Canadian dollar forward for U.S. dollars the further into the future one contracts.6. Using Exhibit 5.4, calculate the one-, three-, and six-month forward premium or discount for the U.S. dollar versus the British pound using European term quotations. For simplicity, assume each month has 30 days. What is the interpretation of your results?Solution: The formula we want to use is:f N,$= [(F N (£/$) - S(£/$))/S(£/$)] x 360/Nf1,$= [(.5251 - .5242)/.5242] x 360/30 = -.0023f3,$= [(.5268 - .5242)/.5242] x 360/90 = -.0198f6,$= [(.5290 - .5242)/.5242] x 360/180 = -.0183The pattern of forward premiums indicates that the British pound is trading at a discount versus the U.S. dollar. That is, it becomes more expensive to buy a U.S. dollar forward for British pounds (in absolute but not percentage terms) the further into the future one contracts.7. Given the following information, what are the NZD/SGD currency against currency bid-ask quotations?American Terms European TermsBank Quotations Bid Ask Bid AskNew Zealand dollar .7265 .7272 1.3751 1.3765Singapore dollar .6135 .6140 1.6287 1.6300Solution: Equation 5.12 from the text implies S b(NZD/SGD) = S b($/SGD) x S b(NZD/$) = .6135 x 1.3765 = .8445. The reciprocal, 1/S b(NZD/SGD)= S a(SGD/NZD)= 1.1841. Analogously, it is implied that S a(NZD/SGD) = S a($/SGD) x S a(NZD/$) = .6140 x 1.3765 = .8452. The reciprocal, 1/S a(NZD/SGD) = S b(SGD/NZD)= 1.1832. Thus, the NZD/SGD bid-ask spread is NZD0.8445-NZD0.8452 and the SGD/NZD spread is SGD1.1832-SGD1.1841.8. Assume you are a trader with Deutsche Bank. From the quote screen on your computer terminal, you notice that Dresdner Bank is quoting €0.7627/$1.00 and Credit Suisse is offering SF1.1806/$1.00. You learn that UBS is making a direct market between the Swiss franc and the euro, with a current €/SF quote of .6395. Show how you can make a triangular arbitrage profit by trading at these prices. (Ignore bid-ask spreads for this problem.) Assume you have $5,000,000 with which to conduct the arbitrage. What happens if you initially sell dollars for Swiss francs? What €/SF price will eliminate triangular arbitrage?Solution: To make a triangular arbitrage profit the Deutsche Bank trader would sell $5,000,000 to Dresdner Bank at €0.7627/$1.00. This trade would yield €3,813,500= $5,000,000 x .7627. The Deutsche Bank trader would then sell the euros for Swiss francs to Union Bank of Switzerland at a price of €0.6395/SF1.00, yielding SF5,963,253 = €3,813,500/.6395. The Deutsche Bank trader will resell the Swiss francs to Credit Suisse for $5,051,036 = SF5,963,253/1.1806, yielding a triangular arbitrage profit of $51,036.If the Deutsche Bank trader initially sold $5,000,000 for Swiss francs, instead of euros, the trade would yield SF5,903,000 = $5,000,000 x 1.1806. The Swiss francs would in turn be traded for euros to UBS for €3,774,969= SF5,903,000 x .6395. The euros would be resold to Dresdner Bank for $4,949,481 = €3,774,969/.7627, or a loss of $50,519. Thus, it is necessary to conduct the triangular arbitrage in the correct order.The S(€/SF)cross exchange rate should be .7627/1.1806 = .6460. This is an equilibrium rate at which a triangular arbitrage profit will not exist. (The student can determine this for himself.) A profit results from the triangular arbitrage when dollars are first sold for euros because Swiss francs are purchased for euros at too low a rate in comparison to the equilibrium cross-rate, i.e., Swiss francs are purchased for only €0.6395/SF1.00 instead of the no-arbitrage rate of €0.6460/SF1.00. Similarly, when dollars are first sold for Swiss francs, an arbitrage loss results because Swiss francs are sold for euros at too low a rate, resulting in too few euros. That is, each Swiss franc is sold for €0.6395/SF1.00 instead of the higher no-arbitrage rate of €0.6460/SF1.00.9. The current spot exchange rate is $1.95/£ and the three-month forward rate is $1.90/£. Based on your analysis of the exchange rate, you are pretty confident that the spot exchange rate will be $1.92/£ in three months. Assume that you would like to buy or sell £1,000,000.a. What actions do you need to take to speculate in the forward market? What is the expected dollar profit from speculation?b. What would be your speculative profit in dollar terms if the spot exchange rate actually turns out to be $1.86/£.Solution:a. If you believe the spot exchange rate will be $1.92/£ in three months, you should buy £1,000,000 forward for $1.90/£. Your expected profit will be:$20,000 = £1,000,000 x ($1.92 -$1.90).b. If the spot exchange rate actually turns out to be $1.86/£ in three months, your loss from the long position will be:-$40,000 = £1,000,000 x ($1.86 -$1.90).10. Omni Advisors, an international pension fund manager, plans to sell equities denominated in Swiss Francs (CHF) and purchase an equivalent amount of equities denominated in South African Rands (ZAR).Omni will realize net proceeds of 3 million CHF at the end of 30 days and wants to eliminate the risk that the ZAR will appreciate relative to the CHF during this 30-day period. The following exhibit shows current exchange rates between the ZAR, CHF, and the U.S. dollar (USD).Currency Exchange Ratesa.Describe the currency transaction that Omni should undertake to eliminate currency riskover the 30-day period.b.Calculate the following:• The CHF/ZAR cross-currency rate Omni would use in valuing the Swiss equityportfolio.•The current value of Omni’s Swiss equity portfolio in ZAR.• The annualized forward premium or discount at which the ZAR is trading versus theCHF.CFA Guideline Answer:a.To eliminate the currency risk arising from the possibility that ZAR will appreciateagainst the CHF over the next 30-day period, Omni should sell 30-day forward CHFagainst 30-day forward ZAR delivery (sell 30-day forward CHF against USD and buy30-day forward ZAR against USD).b.The calculations are as follows:•Using the currency cross rates of two forward foreign currencies and three currencies (CHF, ZAR, USD), the exchange would be as follows:--30 day forward CHF are sold for USD. Dollars are bought at the forward sellingprice of CHF1.5285 = $1 (done at ask side because going from currency into dollars)--30 day forward ZAR are purchased for USD. Dollars are simultaneously sold to purchase ZAR at the rate of 6.2538 = $1 (done at the bid side because going fromdollars into currency)--For every 1.5285 CHF held, 6.2538 ZAR are received; thus the cross currency rate is1.5285 CHF/6.2538 ZAR = 0.244411398.• At the time of execution of the forward contracts, the v alue of the 3 million CHF equity portfolio would be 3,000,000 CHF/0.244411398 = 12,274,386.65 ZAR.• To calculate the annualized premium or discount of the ZAR against the CHF requires comparison of the spot selling exchange rate to the forward selling price of CHF for ZAR.Spot rate = 1.5343 CHF/6.2681 ZAR = 0.24477912030 day forward ask rate 1.5285 CHF/6.2538 ZAR = 0.244411398The premium/discount formula is:[(forward rate – spot rate) / spot rate] x (360 / # day contract) =[(0.244411398 – 0.24477912) / 0.24477912] x (360 / 30) =-1.8027126 % = -1.80% discount ZAR to CHFMINI CASE: SHREWSBURY HERBAL PRODUCTS, LTD.Shrewsbury Herbal Products, located in central England close to the Welsh border, is an old-line producer of herbal teas, seasonings, and medicines. Its products are marketed all over the United Kingdom and in many parts of continental Europe as well.Shrewsbury Herbal generally invoices in British pound sterling when it sells to foreign customers in order to guard against adverse exchange rate changes. Nevertheless, it has just received an order from a large wholesaler in central France for £320,000 of its products, conditional upon delivery being made in three months’ time and the order invoiced in euros.Shrewsbury’s controller, Elton Peters, is concerned with whether the pound will appreciate versus the euro over the next three months, thus eliminating all or most of the profit when the euro receivable is paid. He thinks this is an unlikely possibility, but he decides to contact the firm’s banker for suggestions about hedging the exchange rate exposure.Mr. Peters learns from the banker that the current spot e xchange rate is €/£ is €1.4537, thus the invoice amount should be €465,184. Mr. Peters also learns that the three-month forward rates for the pound and the euro versus the U.S. dollar are $1.8990/£1.00 and $1.3154/€1.00, respectively. The banker offers to set up a forward hedge for selling the euro receivable for pound sterling based on the €/£ forward cross-exchange rate implicit in the forward rates against the dollar.What would you do if you were Mr. Peters?Suggested Solution to Shrewsbury Herbal Products, Ltd.Note to Instructor: This elementary case provides an intuitive look at hedging exchange rate exposure. Students should not have difficulty with it even though hedging will not be formally discussed until Chapter 8. The case is consistent with the discussion that accompanies Exhibit 5.9 of the text. Professor of Finance, Banikanta Mishra, of Xavier Institute of Management – Bhubaneswar, India contributed to this solution.Suppose Shrewsbury sells at a twenty percent markup. Thus the cost to the firm of the £320,000 order is £256,000. Thus, the pound could appreciate to €465,184/£256,000 = €1.8171/1.00 before all profit was eliminated. This seems rather unlikely. Nevertheless, a ten percent appreciation of the pound (€1.4537 x 1.10) to €1.5991/£1.00 would only yield a profit of £34,904 (= €465,184/1.5991 - £256,000). Shrewsbury can hedge the exposure by selling the euros forward for British pounds at F3(€/£) = F3($/£) ÷ F3($/€) = 1.8990 ÷ 1.3154 = 1.4437. At this forward exchange rate, Shrewsbury can “lock-in” a price of £322,217 (= €465,184/1.4437) for the sale. The forward exchange rate indicates that the euro is trading at a premium to the British pound in the forward market. Thus, the forward hedge allows Shrewsbury to lock-in a greater amount (£2,217) than if the euro receivable was converted into pounds at the current spotIf the euro was trading at a forward discount, Shrewsbury would end up locking-in an amount less than £320,000. Whether that would lead to a loss for the company would depend upon the extent of the discount and the amount of profit built into the price of £320,000. Only if the forward exchange rate is even with the spot rate will Shrewsbury receive exactly £320,000.Obviously, Shrewsbury could ensure that it receives exactly £320,000 at the end of three-month accounts receivable period if it could invoice in £. That, however, is not acceptable to the French wholesaler. When invoicing in euros, Shrewsbury could establish the euro invoice amount by use of the forward exchange rate instead of the current spot rate. The invoice amount in that case would be €461,984 = £320,000 x 1.4437. Shrewsbury can now lock-in a receipt of £320,000 if it simultaneously hedges its euro exposure by selling €461,984 at the forward rate of 1.4437. That is, £320,000 = €461,984/1.4437.。

外企财务英语试题及答案一、选择题（每题2分，共20分）1. Which of the following is NOT a financial statement?A. Balance SheetB. Income StatementC. Cash Flow StatementD. Organizational Chart2. What does the term "EBIT" stand for in financial terms?A. Earnings Before Interest and TaxesB. Economic Benefits to InvestorsC. Equity Before Interest and TaxesD. Earnings Before Income Tax3. The process of forecasting a company's future financial performance is known as:A. Financial AnalysisB. Financial PlanningC. Financial ReportingD. Financial Review4. What is the primary purpose of a budget in a business?A. To track expensesB. To project future financial performanceC. To increase salesD. To reduce costs5. Which of the following is a type of long-term liability?A. Accounts PayableB. Notes PayableC. Bonds PayableD. Sales Tax Payable6. The term "ROI" refers to:A. Risk of InvestmentB. Return on InvestmentC. Revenue of InvestmentD. Rate of Interest7. What does "GAAP" stand for?A. General Accounting and Auditing PrinciplesB. Globally Accepted Accounting PracticesC. Generally Accepted Accounting PrinciplesD. Government Accounting and Auditing Procedures8. A company's "working capital" is calculated by:A. Current Assets - Current LiabilitiesB. Total Assets - Total LiabilitiesC. Fixed Assets - Current LiabilitiesD. Current Liabilities / Current Assets9. Which of the following is a non-cash expense?A. RentB. UtilitiesC. DepreciationD. Salaries10. The financial statement that shows the changes in a company's equity over a period of time is:A. Balance SheetB. Income StatementC. Statement of Cash FlowsD. Statement of Retained Earnings二、填空题（每题1分，共10分）11. The __________ is a document that provides a snapshot ofa company's financial condition at a specific point in time.12. __________ is the process of allocating resources to achieve the company's goals.13. A __________ is a financial statement that shows the sources and uses of cash during a specific period.14. __________ are short-term obligations that a company must pay within one year.15. The __________ is the difference between the cost of an asset and its depreciation.16. __________ is the amount of money that a company expects to receive for the sale of goods or services that have been delivered but not yet paid for by customers.17. __________ is the process of evaluating the financial performance of a company.18. __________ are the costs associated with the production of goods or services that have not yet been sold.19. __________ is the process of recording financial transactions in a company's accounting records.20. The __________ is a document that shows the company's net income and expenses over a specific period.三、简答题（每题5分，共30分）21. Explain the difference between "Operating Leverage" and "Financial Leverage."22. Describe the purpose of a "Statement of Changes in Equity."23. What is the role of "Debt Financing" in a company's capital structure?24. Discuss the importance of "Internal Controls" infinancial management.四、计算题（每题5分，共20分）25. Given the following data for a company:- Sales = $500,000- Cost of Goods Sold = $300,000- Operating Expenses = $80,000- Depreciation = $20,000- Interest Expense = $10,000- Taxes = 30% of EBITCalculate the company's EBIT and Net Income.26. If a company has Current Assets of $120,000 and Current Liabilities of $60,000, calculate the company's Working Capital.27. A company has a Return on Investment (ROI) of 15%. If the initial investment was $100,000, calculate the amount of the return.五、论述题（共20分）28. Discuss the role of "Financial Forecasting" in strategic business planning and provide examples of how it can be used to make informed business decisions.答案：一、选择题1. D2. A3. B4. B5. C6. B7. C8. A9. C10. D二、填空题11. Balance Sheet12. Budgeting13. Cash Flow Statement14. Current Liabilities15. Book Value16. Accounts Receivable17. Financial Analysis18.。

The following information is available for T om, a limited liability company:Summarized income statement for the year ended 31 December 2010.$’000Profit from operations 3,650Finance cost (loan note interest) (300)3,350Income tax expense (700)Net profit for the period 2,650Notes:1.The additional loan notes were issued on 1 January 2010. Interest was paid on 30 June2010 and 31 December 2010.2.Dividends paid during the year amounted to $750,000.RequiredPrepare the company’s cash flow statement for the year ended 31 December 2010.Cash flow statement for the year ended 31 December 2010$’000 Net profit 2,650 Add: depreciation [5,600-4,800] 800 Operating profit before working capital changes 3,450 Decrease in inventories (3,400-3,800) 400 Increase in receivables (3,800-2,900) (900) Increase in payables (3,700-3,200) 500 Increase in accruals (700-600) 100 Cash generated from operations 3,550Cash flows from investing activitiesPayments to acquire non-current assets (5,400-3,200+800) (3,000) Net cash used in investing activities (3,000)Cash flow from financing activitiesProceeds from issue of loan notes (3,000-2,000) 1,000 Dividends paid (750) Net cash from financing activities 250 Net increase in cash 800 Cash at 1 January 2010 400 Cash at 31 December 2010 1,200Below are the most recent financial statements for Wildhack. Based on the balance sheet and income statement, calculate the following ratios for 2010:(1)Current ratio; (2) Quick ratio; (3) Cash ratio; (4) Debt ratio; (5) Long-term debt ratio;(6) Times interest earned; (7) Cash flow coverage ratio; (8) Accounts receivable turnover ratio; (9) Inventory turnover ratio; (10) Accounts payable turnover ratio; (11) T otal asset turnover ratio; (12) Gross profit margin; (13) Net profit margin; (14) ROA (use net income in the numerator); (15) ROEWildhack Corporation2010 Income StatementWildhack CorporationBalance Sheet as of December 31, 2009 and 20101、Current ratio=648/1183=0.552、Quick ratio=(88+192)/1183=0.243、Cash ratio=88/1183=0.074、Debt ratio=(1183+2077)/6002=0.545、Long-term debt ratio=2077/6002=0.356、Times interest earned=813/613=1.337、Cash flow coverage ratio=(813+490)/613=2.138、Accounts receivable turnover ratio=2*3756/(224+192)=18.069、Inventory turnover ratio=2*2453/(424+368)=6.1910、Accounts payable turnover ratio=2*2453/(124+144)=18.3111、T otal assets turnover ratio=2*3756/(5996+6002)=0.6312、Gross profit margin=(3756-2453)/3756=0.3513、Net profit margin=132/3756=0.0414、ROA=2*132/(5996+6002)=0.0215、ROE=2*132/(2656+2742)=0.05Gross Sales 销售总额Less: Sales Returns and Allowances 销售退回及折让Sales Discounts 销售折扣Net Sales 销售净额Less: Cost of Goods Sold 销售成本Gross Profit on Sales 销售毛利Net Sales=Net Cash Sale + Net Credit Sale销售净额=现销净额+赊销净额。

财务管理英文题库及答案1. Question: What is the primary goal of financial management in a business?Answer: The primary goal of financial management in a business is to maximize the value of the firm to its shareholders by making optimal investment and financing decisions.2. Question: What is the difference between a current asset and a non-current asset?Answer: A current asset is an asset that is expected to be converted to cash or used up within one year or one operating cycle of the business. A non-current asset, on the other hand, is an asset that is not expected to be converted to cash or used up within one year or one operating cycle.3. Question: Explain the concept of Time Value of Money (TVM).Answer: The Time Value of Money (TVM) is a financial concept that states that a sum of money received today isworth more than the same sum received in the future due toits potential earning capacity. This principle is fundamental to finance and is used to evaluate the relative worth of money at different points in time.4. Question: What is the formula for calculating the presentvalue of a future sum of money?Answer: The formula for calculating the present value (PV) of a future sum of money (FV) is: PV = FV / (1 + r)^n, where r is the discount rate and n is the number of periods.5. Question: Define the term 'Leverage' in the context of financial management.Answer: Leverage in financial management refers to the use of borrowed funds to increase the potential return of an investment. It is a strategy that can amplify gains but also increases the risk of losses if the investment does not perform as expected.6. Question: What is the DuPont Identity and how is it usedin financial analysis?Answer: The DuPont Identity is a formula used to break down the return on equity (ROE) into three parts: net profit margin, asset turnover, and financial leverage. It is used in financial analysis to understand the drivers of a company's profitability and to compare it with other companies.7. Question: How does inflation affect a company's financial statements?Answer: Inflation affects a company's financial statements by reducing the purchasing power of money. It can lead to higher costs for raw materials and labor, which can decrease profit margins. Additionally, inflation can cause assets andliabilities to be understated, and it may affect the real value of reported earnings.8. Question: Explain the concept of Capital Budgeting and its importance.Answer: Capital Budgeting is the process of evaluating the profitability of long-term investments or projects. It is important because it helps a company decide which projects to undertake based on their potential to generate returns over time, considering the time value of money and the risks involved.9. Question: What is the difference between a fixed cost anda variable cost?Answer: A fixed cost is a cost that does not change with the level of production or sales, such as rent or salaries. A variable cost, however, changes in direct proportion to the level of production or sales, such as raw materials or direct labor costs.10. Question: Define the term 'Liquidity Ratios' and provide examples.Answer: Liquidity Ratios are financial metrics used to measure a company's ability to pay off its short-term debts. Examples include the Current Ratio (current assets divided by current liabilities) and the Quick Ratio (current assets minus inventory divided by current liabilities). These ratios help assess the liquidity position of a business.。

财务会计题库英文及答案1. Question: What is the purpose of the statement of cash flows in financial accounting?Answer: The purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of an entity, showing how the changes in balance sheet accounts and income affect cash and cash equivalents, and to reveal the entity's financing and investing activities.2. Question: Explain the difference between a debit and a credit in double-entry bookkeeping.Answer: In double-entry bookkeeping, a debit is an entry on the left side of an account that either increases an asset or expense, or decreases a liability, equity, or revenue. A credit is an entry on the right side of an account that increases a liability, equity, or revenue, or decreases an asset or expense.3. Question: What is the accrual basis of accounting?Answer: The accrual basis of accounting is a method of accounting in which revenues and expenses are recognized when they are earned or incurred, not when cash is received or paid. This method provides a more accurate picture of a company's financial performance over a period of time.4. Question: How does depreciation affect a company's financial statements?Answer: Depreciation is a non-cash expense that allocates the cost of a tangible asset over its useful life. It affects the company's financial statements by reducing the asset's carrying value on the balance sheet and decreasing the net income on the income statement, which in turn can affect the retained earnings.5. Question: What is the primary goal of financial statement analysis?Answer: The primary goal of financial statement analysis is to assess the performance and financial condition of a company. It helps investors, creditors, and other stakeholders make informed decisions by evaluating the company's profitability, liquidity, solvency, and overall financial health.6. Question: What is the difference between a journal entry and a ledger entry?Answer: A journal entry records the initial transaction in the general journal, showing the date, accounts affected, and the amounts debited and credited. A ledger entry, on the other hand, is the posting of the journal entry to the appropriate accounts in the general ledger, which summarizes the transactions for each account.7. Question: Explain the matching principle in financialaccounting.Answer: The matching principle in financial accounting requires that expenses be recognized in the same period asthe revenues they helped to generate. This principle ensures that the income statement reflects the actual economic performance of the period and avoids distortions that could arise from recognizing revenues and expenses in different periods.8. Question: What is the purpose of adjusting entries?Answer: Adjusting entries are made at the end of an accounting period to ensure that the financial statements reflect the current financial position and performance of the company. They adjust for revenues and expenses that have been incurred but not yet recorded, or cash received or paid butnot yet recognized.9. Question: What is the difference between a budget and a forecast?Answer: A budget is a detailed financial plan thatoutlines expected revenues and expenses for a specific period, often used for internal management and control. A forecast,on the other hand, is a projection of future financial performance based on assumptions and trends, and is typically used for strategic planning and decision-making.10. Question: What is the role of the balance sheet infinancial accounting?Answer: The balance sheet is a financial statement that presents a company's financial position at a specific point in time. It lists the company's assets, liabilities, and equity, and is used to assess the company's liquidity, solvency, and overall financial stability. The balance sheet must always balance, with total assets equaling the sum of liabilities and equity.。

西方财务管理试题及答案一、单项选择题（每题2分，共10分）1. 以下哪项不是企业财务管理的目标？A. 利润最大化B. 股东财富最大化C. 企业价值最大化D. 社会责任最大化答案：D2. 以下哪项不是财务杠杆的表现形式？A. 经营杠杆B. 财务杠杆C. 市场杠杆D. 综合杠杆答案：C3. 以下哪项不是企业筹资的渠道？A. 内部筹资B. 银行贷款C. 股票发行D. 政府补贴答案：D4. 以下哪项不是企业投资决策的基本原则？A. 净现值原则B. 内部收益率原则C. 等额年金原则D. 风险分散原则答案：C5. 以下哪项不是企业风险管理的方法？A. 风险转移B. 风险避免C. 风险接受D. 风险共享答案：D二、多项选择题（每题3分，共15分）1. 企业财务管理的内容包括哪些方面？A. 资金筹集B. 资金运用C. 资金分配D. 资金监督答案：ABCD2. 以下哪些因素会影响企业的财务杠杆效应？A. 企业的负债规模B. 企业的盈利水平C. 企业的资产结构D. 企业的市场地位答案：ABC3. 企业筹资方式包括哪些？A. 自有资金B. 银行借款C. 发行债券D. 发行股票答案：ABCD4. 企业投资决策需要考虑哪些因素？A. 投资回报率B. 投资风险C. 投资期限D. 投资规模答案：ABCD5. 企业风险管理包括哪些内容？A. 风险识别B. 风险评估C. 风险控制D. 风险转移答案：ABCD三、判断题（每题2分，共10分）1. 企业财务管理的目标是利润最大化。

答案：错误2. 财务杠杆效应是指企业通过增加负债来提高股东收益。

答案：正确3. 企业筹资的渠道只有内部筹资和外部筹资两种。

答案：错误4. 企业投资决策只需要考虑投资回报率，不需要考虑投资风险。

答案：错误5. 企业风险管理的目的是完全消除风险。

答案：错误四、简答题（每题5分，共20分）1. 简述企业财务管理的作用。

答案：企业财务管理的作用包括：（1）提高资金使用效率；（2）降低企业经营风险；（3）实现企业价值最大化；（4）支持企业战略发展。

会计英语基础试题及答案一、单项选择题（每题2分，共20分）1. The term "accounting" refers to:A. The process of recording, summarizing, analyzing, and interpreting financial informationB. The science of cookingC. The study of plantsD. The practice of law答案：A2. Which of the following is not a financial statement?A. Balance SheetB. Income StatementC. Cash Flow StatementD. Payroll Report答案：D3. The process of identifying, measuring, and communicating economic information is known as:A. AuditingB. BudgetingC. AccountingD. Taxation答案：C4. What is the purpose of an income statement?A. To show the financial position of a company at a specific point in timeB. To show the changes in equity of a company over a period of timeC. To show the results of a company's operations over a period of timeD. To show the cash inflows and outflows of a company over a period of time答案：C5. The accounting equation is:A. Assets = Liabilities + EquityB. Assets - Liabilities = EquityC. Liabilities - Equity = AssetsD. Equity - Assets = Liabilities答案：A6. Which of the following is an example of a tangible asset?A. GoodwillB. PatentsC. MachineryD. Trademarks答案：C7. The term "double-entry bookkeeping" refers to the practice of:A. Recording transactions in two different accountsB. Recording transactions in two different ledgersC. Recording each transaction with a corresponding debit and creditD. Recording each transaction with a corresponding increase and decrease答案：C8. The accounting principle that requires companies to match expenses with revenues in the same period is known as:A. The matching principleB. The accrual basis of accountingC. The cash basis of accountingD. The historical cost principle答案：A9. What is the purpose of depreciation?A. To increase the value of an assetB. To reduce the value of an asset over timeC. To dispose of an assetD. To sell an asset答案：B10. The process of adjusting the accounts at the end of an accounting period to ensure they reflect the actual financial position of the company is called:A. Closing the booksB. Adjusting entriesC. AuditingD. Budgeting答案：B二、多项选择题（每题3分，共15分）1. Which of the following are considered current assets? (Choose all that apply)A. CashB. Accounts ReceivableC. InventoryD. Land答案：A, B, C2. The following are examples of liabilities except:A. Accounts PayableB. Bonds PayableC. Common StockD. Long-term Debt答案：C3. The accrual basis of accounting is different from the cash basis of accounting in that it:A. Recognizes revenues when cash is receivedB. Recognizes revenues when earnedC. Recognizes expenses when cash is paidD. Recognizes expenses when incurred答案：B, D4. Which of the following are considered as equity accounts? (Choose all that apply)A. Retained EarningsB. Common StockC. DividendsD. Treasury Stock答案：A, B, D5. The following are examples of adjusting entries except:A. Accrued RevenueB. Accrued ExpensesC. Prepaid ExpensesD. Depreciation Expense答案：C三、填空题（每题2分，共20分）1. The basic accounting equation is _______ = _______ +_______.答案：Assets, Liabilities, Equity2. The two main types of business entities are _______ and_______.答案：Sole Proprietorship, Corporation3. The process of preparing financial statements is known as _______.答案：Accounting Cycle4. The term used to describe the cost of an asset is _______.答案：Historical Cost5. The accounting principle that requires companies to provide full disclosure in financial reports is known as_______.答案：Full Disclosure Principle6. The _______ statement shows the changes in equity of a company over a period of time.答案：Statement of Changes in Equity7. The _______ statement shows the cash inflows and outflows of a company over a period of time.答案：Cash Flow Statement8. The process of determining the value of an asset is called _______.答案：Valuation9. The _______ principle states that a company should not anticipate revenues or expenses before they are earned or incurred.答案：Cons。

第一章1 CORRECTWhich of the following are microeconomic variables that help define and explain the discipline of finance? DA) risk and returnB) capital structureC) inflationD) all of the aboveFeedback: All of the above are relevant in explaining finance.2 CORRECTOne primary macroeconomic variable that helps define and explain the discipline of finance? CA) capital structureB) inflationC) technologyD) riskFeedback: Technology is very important in explaining the field of finance.3 CORRECTThe money markets deal with _________. BA) securities with a life of more than one yearB) short-term securitiesC) securities such as common stockD) none of the aboveFeedback: The money markets are concerned with short-term securities, those with a life less than one year.4 CORRECTThe ability of a firm to convert an asset to cash is called ___A_________.A) liquidityB) solvencyC) returnD) marketabilityFeedback: Liquidity also means how close an asset is to cash.5 CORRECTEarly in the history of finance, an important issue was: AA) liquidityB) technologyC) capital structureD) financing optionsFeedback: Maintaining liquidity was a major concern historically.6 INCORRECTThe __________C_________ is the most common form of business organization in the U.S.A) corporationB) partnershipC) sole proprietorshipD) none of the aboveFeedback: There are more sole proprietorships than any other form of business organization.7 CORRECTThe _________C___________ has more sales in dollars than any other form of business organization.A) sole proprietorshipB) partnershipC) corporationD) none of the aboveFeedback: The corporation is the most important in terms of dollars.8 CORRECTOne major disadvantage of the sole proprietorship is _____B___________.A) simplicity of decision-makingB) unlimited liabilityC) low operational costsD) none of the aboveFeedback: The owners of a sole proprietorship are personally liable.9 CORRECTThe appropriate firm goal in a capitalist society is ______B__________.A) profit maximizationB) shareholder wealth maximizationC) social responsibilityD) none of the aboveFeedback: The goal is to maximize the wealth of shareholders.10 CORRECTThe agency problem will occur in a business firm if the goals of ______C______ and shareholders do not agree.A) investorsB) the publicC) managementD) none of the above第二章Feedback: The goals of management may be different from those of shareholders.The accounting statements that a firm is required to file include all but one of these. BA) Balance SheetB) Statement of Accounts ReceivableC) Income StatementD) Statement of Cash FlowsFeedback: The required statements include the income statement, balance sheet and statement of changes in cash flows. The statement of changes in owners equity (or retained earnings) is also required by Generally Accepted Accounting Principles but is not covered in this text.2 CORRECTThe _______A________ shows the firm's operating results over a period of time.A) Income StatementB) Statement of Cash FlowsC) Balance SheetD) None of the aboveFeedback: The Income Statement represents a moving picture of a firm's revenues and expenses.3 CORRECTAll of the following except one are tax-deductible expenses. CA) interest expenseB) depreciationC) common stock dividendsD) income taxesFeedback: Common stock dividends are not tax deductible to a firm.4 CORRECTAll of the following are non-operating expenses except ______B_______.A) interest expenseB) cost of goods soldC) preferred stock dividendsD) taxesFeedback: The cost of goods sold is an operating expense.5 CORRECTBondholders receive _____C________ from the business firm.A) preferred dividend paymentsB) common stock paymentsC) interest paymentsD) royaltiesFeedback: Bondholders are typically paid interest semi-annually.6 CORRECTThe ratio of net income to common shares outstanding is called _____B_________.A) price/earnings ratioB) earnings per shareC) dividends per shareD) none of the aboveFeedback: This is called the earnings per share (EPS).7 CORRECTUsually, firms with high price/earnings ratios are _____A_______ firms.A) growthB) decliningC) matureD) none of the aboveFeedback: A high p/e ratio indicates a firm with strong growth prospects8 CORRECTOne of the limitations of the _____C_______ is that it is based on historical costs.A) income statementB) statement of cash flowsC) balance sheetD) none of the aboveFeedback: The balance sheet uses historical costs.9 INCORRECTA source of funds is a: DA) decrease in a current assetB) decrease in a current liabilityC) increase in a current liabilityD) a and c aboveFeedback: A decrease in current assets is equivalent to an increase in current liabilities.10 INCORRECTShort-term financing for a business firm includes: BA) bondsB) accounts payableC) stockholder's equityD) mortgagesFeedback: The other three answers represent long-term financing.第三章Trend analysis allows a firm to compare its performance to: DA) other firms in the industryB) other time periods within the firmC) other industriesD) all of the aboveFeedback: Trend analysis gives an analyst a long-term perspective. As a security analyst and a portfolio manager with Oppenheimer Capital, Dick Glasebrook spoke to a Senior Finance Managers’ Meeting at the Boeing Company on May 4, 1999. He said it is one thing to compare afirm’s performance against competitors within t he same industry. But investors are not limited to specific industries. In fact, investors seek to diversify their investments across many different industries. So management should also compare performance to any well run company--both in and outside of their industry.2Ratio analysis allows a firm to compare its performance to: DA) other firms in the industryB) other time periods within the firmC) other industriesD) all of the aboveFeedback: Trend analysis gives an analyst a long-term perspective. As a security analyst and a portfolio manager with Oppenheimer Capital, Dick Glasebrook spoke to a Senior Finance Managers’ Meeting at the Boeing Company on May 4, 1999. He said it is one thing to compare a firm’s performance against com petitors within the same industry. But investors are not limited to specific industries. In fact, investors seek to diversify their investments across many different industries. So management should also compare performance to any well run company--both in and outside of their industry.3Usually, a firm's suppliers are most interested in its ___D_____ ratios.A) profitabilityB) debtC) asset utilizationD) liquidityFeedback: The suppliers are most interested in getting paid, as shown by the liquidity of the firm.4 CORRECT__________D_____ would be most interested in a firm's debt utilization ratios.A) bondholdersB) stockholdersC) short-term creditorsD) Both A and BFeedback: Debt is indicated by a firm issuing bonds but is also a function of the debt to equity relationship or the degree of financial leverage. Both bond holders and stockholders are interested in this relationship although frof opposing viewpoints.5 CORRECTThe _______C______ ratio indicates the return firm shareholders are earning.A) return on assetsB) return on investmentC) return on equityD) net profit marginFeedback: The shareholders represent equity, or ownership in the firm.6 CORRECTWhich of the following is an example of a profitability ratio? CA) Quick ratioB) Average collection periodC) Return on equityD) Times interest earnedFeedback: This is the only profitability ratio that is listed. All profitability ratios have net income in the denominator.7Total asset turnover will indicate if there is a problem with the ___C______ ratio.A) debt to assetsB) times interest earnedC) fixed asset turnoverD) currentFeedback: Fixed asset turnover is part of total asset turnover.8 CORRECTAll of the following are asset utilization ratios except: DA) average collection periodB) inventory turnoverC) receivables turnoverD) return on assetsFeedback: Return on assets is a profitability ratio. Any ratio with net income in the denominator is a profitability ratio.9 CORRECTIf a firm's debt ratio is 55%, this means ____C__ of the firm's assets are financed by equity financing.A) 55%B) 50%C) 45%D) not enough information to answer questionFeedback: The equity portion plus the debt portion must add up to 100%.10 CORRECTAll of the following can present problems for ratio analysis except: DA) inflationB) inventory accounting methodsC) disinflationD) all of the aboveFeedback: These all may cause problems.第四章Planning for future growth is called: CA) capital budgetingB) working capital managementC) financial forecastingD) none of the aboveFeedback: This involves looking ahead to the future.2 INCORRECTWhich one of the following is NOT a tool of financial forecasting? BA) cash budgetB) capital budgetC) pro forma balance sheetD) pro forma income statementFeedback: The other three are all tools used by an analyst.3 CORRECTThe first step in developing a pro forma income statement is to: AA) build a sales forecastB) determine the production scheduleC) determine cost of goods soldD) none of the aboveFeedback: A sales forecast begins the process.4 INCORRECTPro forma statements are _B______ statements.A) actualB) projectedC) a previous year'sD) none of the aboveFeedback: Pro forma statements are based on estimates or projections.5 INCORRECTAll of the following compose cost of goods sold except ______D__________.A) raw materialB) laborC) overheadD) all of the above are part of cost of goods soldFeedback: The cost of good sold involves all three of these items.6 INCORRECTFinancial managers use the ______B_______ to plan for monthly financing needs.A) capital budgetB) cash budgetC) pro forma income statementD) none of the aboveFeedback: The cash budget allows for planning cash needs.7 INCORRECTThe payments that a firm collects from its customers are called _______C________.A) cash disbursementsB) cash outflowsC) cash receiptsD) none of the aboveFeedback: Cash receipts represent cash coming into the firm.8 INCORRECTExamples of cash disbursements are all but _________B________.A) payment for materials purchasedB) collection of accounts receivableC) payment of dividendsD) payment of taxesFeedback: The collection of accounts receivable is an example of a cash receipt, not a cash disbursement.9 CORRECTIn developing the pro forma balance sheet, we get common stock from __________A_______.A) the firm's previous balance sheetB) the firm's cash budgetC) the firm's income statementD) none of the aboveFeedback: Common stock appears on the balance sheet.10 INCORRECTThe percent of sales method of financial forecasting shows us the relationship between________D___ and financing needs.A) changes in the level of liabilitiesB) changes in the level of assetsC) changes in debtD) changes in the level of salesFeedback: It compares the relationship between balance sheet items and sales.第五章An example of a semi-variable cost is: DA) rentB) raw materialC) depreciationD) utilitiesFeedback: The other three represent fixed or variable costs.2 CORRECT_________A____ is the point at which firm profit is equal to zero.A) breakevenB) operating breakevenC) financial leverageD) combined breakevenFeedback: This is the point where the firm's revenues equal its expenses.3 INCORRECTIn breakeven analysis, if fixed costs rise, then the breakeven point will _____B_____.A) fallB) riseC) stay the sameD) none of the aboveFeedback: This implies that a larger quantity will have to be sold in order to break even.4 INCORRECTIn the breakeven formula, Price - Variable Cost is called the___C__________.A) breakeven pointB) leverageC) contribution marginD) none of the aboveFeedback: This implies that a larger quantity will have to be sold in order to cover the additional fixed costs and still break even.5 INCORRECTWhich of the following types of firms may operate with high operating leverage? BA) a doctor's officeB) an auto manufacturing facilityC) a mental health clinicD) none of the above would have high operating leverageFeedback: This implies a high break-even point and high operating expenses.6 INCORRECTThe __________C__________ is the percentage change in operating income that results from a percentage change in sales.A) degree of financial leverageB) breakeven pointC) degree of operating leverageD) degree of combined leverageFeedback: This is called the degree of operating leverage (DOL).7 CORRECTIf interest expenses for a firm rise, we know that firm has taken on more ______A________.A) financial leverageB) operating leverageC) fixed assetsD) none of the aboveFeedback: Financial leverage refers to interest expense on debt.8 INCORRECTThe ________B________ is the percentage change in earnings per share that results from a percentage change in operating income.A) degree of combined leverageB) degree of financial leverageC) breakeven pointD) degree of operating leverageFeedback: This is known as the degree of financial leverage (DFL).9 INCORRECTCombined leverage is the percentage change in relationship between sales and ______C______.A) operating incomeB) operating leverageC) earnings per shareD) breakeven pointFeedback: This combines operating leverage and financial leverage.10 INCORRECTA highly leveraged firm is ____B______ risky than its peers.A) lessB) moreC) the sameD) none of the aboveFeedback: Leverage is equivalent to risk, because it implies a higher level of fixed costs.第六章Working capital management involves the financing and management of the __C_____ assets of the firm.A) fixedB) totalC) currentD) none of the aboveFeedback: Working capital management deals with the financing and management of currentassets.2 INCORRECTAn asset sold at the end of a specified time period is called a ______B_______ asset.A) temporary currentB) self-liquidatingC) currentD) permanent currentFeedback: A self-liquidating asset is one that will be sold after a certain amount of time.3 CORRECTFixed assets are usually financed with _______A______ funds.A) long-termB) short-termC) permanentD) none of the aboveFeedback: Fixed assets are by definition long-term assets.4 INCORRECT_________B_____ is usually used to finance self-liquidating assets.A) Long-term financingB) Short-term financingC) Permanent financingD) none of the aboveFeedback: These are short-term or temporary assets.5 INCORRECTShort-term interest rates, in a normal economy, are generally ____C____ than long-term rates.A) higherB) the sameC) lowerD) none of the aboveFeedback: Long-term interest rates are normally higher than short-term interest rates to compensate for uncertainty or risk.6 INCORRECTThe expectations hypothesis says that _____B____ interest rates are a function of _______ interest rates.A) short-term; long-termB) long-term; short-termC) short-term; short-termD) none of the aboveFeedback: This theory says that long-term interest rates reflect the average of short-term expected rates.7 INCORRECTInsurance companies would tend to invest in ______C____ securities.A) short-termB) intermediate termC) long-termD) not enough information to answerFeedback: An insurance company would prefer long-term securities because they are more conservative or safer.8 INCORRECTThe _________D_____ theory says that investors must be paid a premium to hold long-term securities.A) expectations hypothesisB) time value theoryC) segmentationD) liquidity premiumFeedback: This is the liquidity premium.9 INCORRECTShort-term financing plans with high liquidity have: BA) high return and high riskB) moderate return and moderate riskC) low profit and low riskD) none of the aboveFeedback: This is known as a "middle-of-the-road" approach.10 INCORRECTLong-term financing plans with low liquidity have: BA) high return and high riskB) moderate return and moderate riskC) low return and low riskD) none of the aboveFeedback: This is also known as a "middle-of-the-road" approach.第七章The transaction motive for holding cash is for BA) a safety cushionB) daily operating requirementsC) compensating balance requirementsD) none of the aboveFeedback: This is money for everyday transactions.2 CORRECTWhich of the following motives for holding cash is required by the bank before loaning money? AA) compensating balance motiveB) transactions motiveC) precautionary motiveD) none of the aboveFeedback: This can be considered a form of collateral.3 INCORRECTThe difference between the cash balance on the firm's books and the balance shown on the bank's books is called: BA) the compensating balanceB) floatC) a safety cushionD) none of the aboveFeedback: Float implies that it takes time for checks to clear.4 CORRECTElectronic funds transfer has _____A_____ the use of float.A) reducedB) increasedC) had no effect onD) none of the aboveFeedback: Electronic funds transfer (EFT) has moved cash more quickly and reduced float.5 INCORRECTThe most utilized marketable security by most firms is the: DA) Treasury bondB) Agency securityC) Certificate of DepositD) Treasury billFeedback: Treasury bills (T-Bills) are very safe, popular investments.6 INCORRECTOf the following marketable securities, which are guaranteed by the Federal government? DA) agency securitiesB) negotiable certificates of depositC) banker's acceptancesD) none of the aboveFeedback: None of these are backed by the government.7 INCORRECTThe 5 C's of credit include: DA) conditionsB) collateralC) characterD) all of the aboveFeedback: The other two C's of credit are capacity and capital.8 INCORRECT BThe use of safety stock by a firm will:A) reduce inventory costsB) increase inventory costsC) have no effect on inventory costsD) none of the aboveFeedback: Safety stock is extra inventory a firm keeps in case of unforseen circumstances.9 INCORRECTAll of these factors are used in credit policy administration except: CA) credit standardsB) terms of tradeC) dollar amount of receivablesD) collection policyFeedback: The other three choices are the primary policy variables to consider.10 CORRECTFirms aim to hold ___A___ cash balances since cash is a non-interest earning asset.A) lowB) averageC) highD) none of the aboveFeedback: A firm does not want to keep too much cash on hand because it will lose interest (by not keeping the money in a bank).第八章The largest provider of short-term credit for a business is: BA) banking organizationsB) suppliers to the firmC) commercial paperD) EurodollarsFeedback: This is also known as trade credit.2 INCORRECTThe number of days until the firm is past due to a supplier is called the: CA) discount periodB) term to creditC) payment periodD) none of the aboveFeedback: The payment period is the number of days a firm has to pay its bill.3 INCORRECTIf a firm is given trade credit terms of 2/10, net 30, then the cost of the firm failing to take the discount is: CA) 2%B) 30%C) 36.72%D) 10%Feedback: This is calculated using formula 8-1 in this chapter.4 CORRECTThe interest rate given by a bank to its most creditworthy customers is the: AA) prime rateB) LIBOR rateC) federal funds rateD) discount rateFeedback: This is the "best" interest rate charged to people with excellent credit.5 INCORRECTWhich of the following types of bank loans generally have the highest effective rate of interest? DA) simple interest loanB) discount interest loanC) loan with a compensating balanceD) installment loanFeedback: Installment loans tend to be the most expensive.6 INCORRECTIf a firm needs to borrow $100,000, at 8% interest, to finance working capital needs and a 20% compensating is required, then the firm should borrow ____C______.A) $100,000B) $80,000C) $125,000D) $108,000Feedback: The formula to calculate this is: amount needed/(1-c), where c = the compensating balance percentage.7 CORRECTIf a bank offers a firm a simple interest loan of $1000 for 120 days at a cost of $60 interest, what is the effective rate of interest on the loan? AA) 18.00%B) 6.00%C) 20.00%D) none of the aboveFeedback: This is calculated by using formula 8-2 in this chapter.8 INCORRECTIf a company raises money to finance short-term needs by selling its accounts receivable to another party, this is called ___________. CA) pledgingB) warehousingC) factoringD) none of the aboveFeedback: Factoring means selling the accounts receivable outright.9 INCORRECTThe most restrictive policy for using inventory as collateral for short-term borrowing is called: BA) blanket inventory lienB) warehousing inventoryC) trust receiptD) factoringFeedback: This is a complex method of inventory financing wherein the lender takes control of the inventory.10 CORRECTA type of accounts receivable financing where a firm uses its receivables as collateral is called: AA) pledgingB) securitizationC) factoringD) warehousingFeedback: Pledging means using accounts receivable as collateral.第九章Both the future and present value of a sum of money are based on: CA) interest rateB) number of time periodsC) both a and bD) none of the aboveFeedback: These two factors are used in time value of money calculations.2 INCORRECTAn annuity is ___________________. CA) more than one paymentB) a series of unequal but consecutive paymentsC) a series of equal and consecutive paymentsD) a series of equal and non-consecutive paymentsFeedback: An annuity is a stream of equal payments to be received in the future.3 CORRECTIf you have $1000 and you plan to save it for 4 years with an interest rate of 10%, what is the future value of your savings? AA) $1464.00B) $1000.00C) $1331.00D) cannot be determinedFeedback: This is calculated by using formua 9-1 in this chapter.4 INCORRECTTime value of money is an important finance concept because: DA) it takes risk into accountB) it takes time into accountC) it takes compound interest into accountD) all of the aboveFeedback: Time value of money incorporates all of these concepts.5 INCORRECTThe present value of a dollar to be received in the future is: CA) more than a dollarB) equal to a dollarC) less than a dollarD) none of the aboveFeedback: The reason is because you can earn interest on the money.6 CORRECTThe future value of a dollar that you invest today is: AA) more than a dollarB) equal to a dollarC) less than a dollarD) none of the aboveFeedback: Again, the reason is because the money can earn interest.7 INCORRECTThe future value of an annuity is: CA) less than each annuity paymentB) equal to each annuity paymentC) more than each annuity paymentD) none of the aboveFeedback: The reason has to do with compound interest (or interest earning more interest).8 INCORRECTThe concepts of present value and future value are:DA) directly related to each otherB) not related to each otherC) proportionately related to each otherD) inversely related to each otherFeedback: They are essentially opposite sides of a coin.9 INCORRECTIf you win the lottery and you choose to have your proceeds distributed to you over atwenty-year time period, with the first payment coming to you one year from today, which calculation would you use to calculate the worth of those proceeds to you today? DA) future value of a lump sumB) future value of an annuityC) present value of a lump sumD) present value of an annuityFeedback: This is shown by formula 9-4 in this chapter. But this is not a typical situation. Most lotteries (let’s say $1 Million over 20 years), will pay you the first payment today and $50,000 each year for the next 19 years. This is actually an “annuity due” which is not covered in this text. You’d have to calculate the present value of the annuity for 19 years and add the initial $50,000 you received today.10 CORRECTYou have $1000 you want to save. If four different banks offer four different compounding methods for interest, which method should you choose to maximize your $1000? AA) compounded dailyB) compounded quarterlyC) compounded semi-annuallyD) compounded annuallyFeedback: The more often interest is compounded the faster it will grow because you will begin to earn interest on the interest sooner.第十章In valuing a financial asset, you use these variables: DA) present value of future cash flowsB) discount rateC) required rate of returnD) all of the aboveFeedback: All of these are needed in order to value an asset.2 CORRECTThe principal amount of a bond at issue is called: AA) par valueB) coupon valueC) present value of an annuityD) present value of a lump sumFeedback: This is also known as the face value or stated value.3 INCORRECT BIf a bond's value rises above its par value during its life, interest rates have:A) gone upB) gone downC) stayed the sameD) there is no correlation with interest ratesFeedback: There is an inverse relationship between bond prices and interest rates (or yields).4 INCORRECTThe basic "rent" that you are charged when you borrow money is called: CA) inflation premiumB) risk premiumC) real rate of returnD) none of the aboveFeedback: This is known as the opportunity cost in economics.5 INCORRECTAs time to maturity draws near, a bond's value approaches: BA) zeroB) parC) the coupon paymentD) none of the aboveFeedback: The bond price gets closer to its face value the closer it is to maturity (see figure 10-2 in this chapter).6 INCORRECTOne characteristic of preferred stock is that:DA) it has no maturity dateB) it is a hybrid security with characteristics of both common stock and debtC) it pays a fixed dividend paymentD) all of the aboveFeedback: Preferred stock is described by all of the above characteristics.7 CORRECTCommon stock that has no growth in dividends is valued as if it were: AA) preferred stockB) a bondC) an optionD) none of the aboveFeedback: It is treated the same as preferred stock.8 INCORRECT。

CHAPTER 1 GLOBALIZATION AND THE MULTINATIONAL FIRM SUGGESTED ANSWERS TO END-OF-CHAPTER QUESTIONSQUESTIONS1. Why is it important to study international financial managementAnswer: We are now living in a world where all the major economic functions i.e. consumptionproduction and investment are highly globalized. It is thus essential for financial managers to fullyunderstand vital international dimensions of financial management. This global shift is in markedcontrast to a situation that existed when the authors of this book were learning finance some twenty yearsago.At that time most professors customarily and safely to some extent ignored international aspectsof finance. This mode of operation has become untenable since then.2. How is international financial management different from domestic financial managementAnswer: There are three major dimensions that set apart international finance from domestic finance.They are: 1. foreign exchange and political risks 2. market imperfections and 3. expanded opportunity set.3. Discuss the three major trends that have prevailed in international business during the last two decades.Answer: The 1980s brought a rapid integration of international capital and financial markets. Impetus forglobalized financial markets initially came from the governments of major countries that had begun toderegulate their foreign exchange and capital markets. The economic integration and globalization thatbegan in the eighties is picking up speed in the 1990s via privatization. Privatization is the process bywhich a country divests itself of the ownership and operation of a business venture by turning it over tothe free market system. Lastly trade liberalization and economic integration continued to proceed at boththe regional and global levels.4. How is a country‟s economic well-being enhanced through free international trade in goods andservicesAnswer: According to David Ricardo with free international trade it is mutually beneficial for twocountries to each specialize in the production of the goods that it can produce relatively most efficientlyand then trade those goods. By doing so the two countries can increase their combined productionwhich allows both countries to consume more of both goods. This argument remains valid even if acountry can produce both goods more efficiently than the other country. International trade is not a …zero-sum‟ game in which one country benefits at the expense of another country. Rather international tradecould be an …increasing-sum‟ game at which all players become winners.5. What considerations might limit the extent to which the theory of comparative advantage is realisticAnswer: The theory of comparative advantage was originally advanced by the nineteenth centuryeconomist David Ricardo as an explanation for why nations trade with one another. The theory claimsthat economic well-being is enhanced if each country‟s citizens produce what they have a comparativeadvantage in producing relative to the citizens of other countries and then trade products. Underlying thetheory are the assumptions of free trade between nations and that the factors of production landbuildings labor technology and capital are relatively immobile. To the extent that these assumptions donot hold the theory of comparative advantage will not realistically describe international trade.6. What are multinational corporations MNCs and what economic roles do they playAnswer: A multinational corporation MNC can be defined as a business firm incorporated in onecountry that has production and sales operations in several other countries. Indeed some MNCs haveoperations in dozens of different countries. MNCs obtain financing from major money centers around theworld in many different currencies to finance their operations. Global operations force the treasurer‟soffice to establish international banking relationships to place short-term fundsin several currencydenominations and to effectively manage foreign exchange risk.7. Mr. Ross Perot a former Presidential candidate of the Reform Party which is a third political party inthe United States had strongly objected to the creation of the North American Trade AgreementNAFTA which nonetheless was inaugurated in 1994 for the fear of losing American jobs to Mexicowhere it is much cheaper to hire workers. What are the merits and demerits of Mr. Perot‟s position onNAFTA Considering the recent economic developments in North America how would you assess Mr.Perot‟s position on NAFTAAnswer: Since the inception of NAFTA many American companies indeed have invested heavily inMexico sometimes relocating production from the United States to Mexico. Although this might havetemporarily caused unemployment of some American workers they were eventually rehired by otherindustries often for higher wages. Currently the unemployment rate in the U.S. is quite low by historicalstandard. At the same time Mexico has been experiencing a major economic boom. It seems clear thatboth Mexico and the U.S. have benefited from NAFTA. Mr. Perot‟s concern appears to hav e been illfounded.8. In 1995 a working group of French chief executive officers was set up by the Confederation of FrenchIndustry CNPF and the French Association of Private Companies AFEP to study the French corporategovernance structure. The group reported the following among other things “The board of directorsshould not simply aim at maximizing share values as in the U.K. and the U.S. Rather its goal should be toserve the company whose interests should be clearly distinguished from those of its shareholdersemployees creditors suppliers and clients but still equated with their general common interest which isto safeguard the prosperity and continuity of the company”. Evaluate the above recommendation of theworking group.Answer: The recommendations of the French working group clearly show that shareholder wealthmaximization is not a universally accepted goal of corporate management especially outside the UnitedStates and possibly a few other Anglo-Saxon countries including the United Kingdom and Canada. Tosome extent this may reflect the fact that share ownership is not wide spread in most other countries. InFrance about 15 of households own shares.9. Emphasizing the importance of voluntary compliance as opposed to enforcement in the aftermath ofcorporate scandals e.g. Enron and WorldCom U.S. President George W. Bush stated that while tougherlaws might help “ultimately the ethics of American business depends on the conscience of America‟sbusiness leaders.” Describe your view on this statement.Answer: There can be different answers to this question. If business leaders always behave with a highethical standard many of the corporate scandals we have seen lately might not have happened. Since wecannot fully depend on the ethical behavior on the part of business leaders the society should protectitself by adopting therules/regulations and governance structure that would induce business leaders tobehave in the interest of the society at large.10. Suppose you are interested in investing in shares of Nokia Corporation of Finland which is a worldleader in wireless communication. But before you make investment decision you would like to learnabout the company. Visit the website of CNN Financial network and collectinformation about Nokia including the recent stock price history and analysts‟ views of the company.Discuss what you learn about the company. Also discuss how the instantaneous access to information viainternet would affect the nature and workings of financial markets.Answer: As students might have learned from visiting the website information is readily available evenfor foreign companies like Nokia. Ready access to international information helpsintegrate financialmarkets dismantling barriers to international investment and financing. Integration however may help afinancial shock in one market to be transmitted to other markets.MINI CASE: NIKE‟S DECISION Nike a U.S.-based company with a globally recognized brand name manufactures athletic shoes insuch Asian developing countries as China Indonesia and Vietnam using subcontractors and sells theproducts in the U.S. and foreign markets. The company has no production facilities in the United States.In each of those Asian countries where Nike has production facilities the rates of unemployment andunderemployment are quite high. The wage rate is very low in those countries by the U.S. standardhourly wage rate in the manufacturing sector is less than one dollar in each of those countries which iscompared with about 18 in the U.S. In addition workers in those countries often are operating in poorand unhealthy environments and their rights are not well protected. Understandably Asian host countriesare eager to attract foreign investments like Nike‟s to develop their economies and raise the livingstandards of th eir citizens. Recently however Nike came under a world-wide criticism for its practice ofhiring workers for such a low pay “next to nothing” in the words of critics and condoning poor workingconditions in host countries. Evaluate and discuss various …ethical‟ as well as economic ramifications of Nike‟s decision toinvest in those Asian countries.Suggested Solution to Nike‟s Decision Obviously Nike‟s investments in such Asian countries as China Indonesia and Vietnam weremotivated to take advantage of low labor costs in those countries. While Nike was criticized for the poorworking conditions for its workers the company has recognized the problem and has substantiallyimproved the working environments recently. Although Nike‟s workers get paid very low wages by theWestern standard they probably are making substantially more than their local compatriots who are eitherunder- or unemployed. While Nike‟s detractors may have valid points one should not ignore the fact thatthe company is making contributions to the economic welfare of those Asian countries by creating jobopportunities. CHAPTER 1A THEORY OF COMPARATIVE ADVANTAGE SUGGESTED SOLUTIONS TO APPENDIX PROBLEMSPROBLEMS1. Country C can produce seven pounds of food or four yards of textiles per unit of input. Compute theopportunity cost of producing food instead of textiles. Similarly compute the opportunity cost ofproducing textiles instead of food.Solution: The opportunity cost of producing food instead of textiles is one yard of textiles per 7/4 1.75pounds of food. A pound of food has an opportunity cost of4/7 .57 yards of textiles.2. Consider the no-trade input/output situation presented in the following table for Countries X and Y.Assuming that free trade is allowed develop a scenario that will benefit the citizens of both countries.INPUT/OUTPUT WITHOUT TRADE_________________________________________________________________ ______ Country X YTotal___________________________________________________________________ _____I. Units of Input000000_____________________________________________________Food 70 60Textiles 4030______________________________________________________________________ __II. Output per Unit of Inputlbs or yards____________________________________________________Food 17 5Textiles 52_______________________________________________________________________ _III. Total Outputlbs or yards000000____________________________________________________Food 1190 300 1490Textiles 200 60260_____________________________________________________________________ ___IV. Consumptionlbs or yards000000___________________________________________________Food 1190 300 1490Textiles 200 60260_____________________________________________________________________ ___Solution: Examination of the no-trade input/output table indicates that Country X has an absoluteadvantage in the production of food and textiles. Country X can “trade off” one unit of productionneeded to produce 17 pounds of food for five yards of textiles. Thus a yard of textiles has an opportunitycost of 17/5 3.40 pounds of food or a pound of food has an opportunity cost of 5/17 .29 yards oftextiles. Analogously Country Y has an opportunity cost of 5/2 2.50 pounds of food per yard oftextiles or 2/5 .40 yards of textiles per pound of food. In terms of opportunity cost it is clear thatCountry X is relatively more efficient in producing food and Country Y is relatively more efficient inproducing textiles. Thus Country X Y has a comparative advantage in producing food textile iscomparison to Country Y X. When there are no restrictions or impediments to free trade the economic-well being of thecitizens of both countries is enhanced through trade. Suppose that Country X shifts 20000000 unitsfrom the production of textiles to the production of food where it has a comparative advantage and thatCountry Y shifts 60000000 units from the production of food to the production of textiles where it has acomparative advantage. Total output will now be 90000000 x 17 1530000000 pounds of food and20000000 x 5 100000000 90000000 x 2 180000000 280000000 yards of textiles.Further suppose that Country X and Country Y agree on a price of 3.00 pounds of food for one yard oftextiles and that Country X sells Country Y 330000000 pounds of food for 110000000 yards of textiles.Under free trade the following table shows that the citizens of Country X Y have increased theirconsumption of food by 10000000 30000000 pounds and textiles by 10000000 10000000 yards.INPUT/OUTPUT WITH FREE TRADE_________________________________________________________________ _________ Country X YTotal___________________________________________________________________ _______I. Units of Input 000000_______________________________________________________Food 90 0Textiles 2090______________________________________________________________________ ____II. Output per Unit of Input lbs or yards______________________________________________________Food 17 5Textiles 52_______________________________________________________________________ ___III. Total Output lbs or yards 000000_____________________________________________________Food 1530 0 1530Textiles 100 180280_____________________________________________________________________ _____IV. Consumption lbs or yards 000000_____________________________________________________Food 1200 330 1530Textiles 210 70280_____________________________________________________________________ _____ CHAPTER 3 BALANCE OF PAYMENTS SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMSQUESTIONS1. Define the balance of payments.Answer: The balance of payments BOP can be defined as the statistical record of a country‟sinternational transactions over a certain period of time presented in the form of double-entry bookkeeping.2. Why would it be useful.。

{财务管理财务会计}财务会计英语练习及答案CHAPTER13 ACCOUNTINGFORPARTNERSHIPSAND LIMITEDLIABILITYCORPORATIONSANS:TDIF:1OBJ:0320.Anewpartnercontributesaccountsreceivabletoapartnershipwhichappearinth eledgerofhissoleproprietorshipat$20,500andtherewasanallowancefordoubtful accountsof$750.If$600oftheaccountsreceivablesarepletelyworthless,thepart nershipaccountsreceivableshouldbedebitedfor$19,900.ANS:TDIF:2OBJ:0321.Onereasonthatdistributionsofineandlossarepreparedistoobtaintheinforma tiontorecordaclosingentry.ANS:TDIF:1OBJ:0422.Ifnothingisstated,partnershipineisdividedinproportiontotheindividualp artner'scapitalbalance.ANS:FDIF:2OBJ:0423.Thesalaryallocationtopartnersusedindividingnetinewouldalsoappearassal aryexpenseonthepartnershipinestatement.ANS:FDIF:2OBJ:0424.Ifthearticlesofpartnershipprovideforannualsalaryallowancesof$36,000an d$18,000toXandYrespectivelyandnetineis$30,000,X'sshareofnetineis$20,000. ANS:FDIF:2OBJ:0425.Ifthenetineofapartnershipislessthanthetotaloftheallowancesprovidedbyt hepartnershipagreement,thedifferencemustbedividedamongthepartnersinthein e-sharingratio.ANS:FDIF:2OBJ:0426.Theamountthatapartnerwithdrawsasamonthlysalaryallowancedoesnotaffectt hedivisionofnetine.ANS:TDIF:2OBJ:0427.AdevotesfulltimeandBdevotesone-halftimetotheirpartnership.Ifthepartne rshipagreementissilentconcerningthedivisionofnetine,Awillreceivea$20,000 shareofanetineof$30,000.ANS:FDIF:2OBJ:0428.Inthedistributionofine,thenetineislessthanthesalaryandinterestallowan cesgranted,theremainingbalancewillbeanegativeamountthatmustbedividedamon gthepartnersasthoughitwerealoss.ANS:TDIF:2OBJ:0429. Detailsofthedivisionofpartnershipineshouldnormallybedisclosedinthefinanc ialstatements.ANS:TDIF:2OBJ:0430.Wheneverapartnershipisdissolved,theassetsareliquidated.ANS:FDIF:1OBJ:0531.Whenapartnershipdissolves,anewpartnershipisformedandanewpartnershipag reementshouldbeprepared.ANS:TDIF:1OBJ:0532.Manypartnershipsprovidefortheadmissionofnewpartnersorwithdrawalsofpre sentpartnersinthepartnershipagreementsothatthefirmmaycontinuetooperatewi thoutexecutinganewagreement.ANS:TDIF:1OBJ:0533.Apersonmaybeadmittedtoapartnershiponlywiththeconsentofallthecurrentpa rtners.ANS:TDIF:1OBJ:0534.Partnership'sassetaccountsshouldbechangedfromcosttofairmarketvaluewhe nanewpartnerisadmittedtoafirmoranexistingpartnerwithdrawsanddies. ANS:TDIF:2OBJ:0535.Inadmittinganewpartner,thepanychoosestousethepurchaseofaninterestmeth od,thecapitalinterestofthenewpartnerisobtainedfromthecurrentpartnersandb oththetotalassetsandtotalcapitalareincreased.ANS:FDIF:2OBJ:0536.Whenanewpartnerpurchasestheentireinterestofanoldpartner,thenewpartner 'scapitalaccountshouldbecreditedfortheamountheorshepaidtotheoldpartner.46.Ifanewpartneristobeadmittedtoapartnershipandabonusisattributedtotheol dpartnership,thebonusshouldbedividedbetweenthecapitalaccountsoftheorigin alpartnersaccordingtotheircapitalbalances.ANS:FDIF:2OBJ:0547.IfretiringpartnerAsellshisorherinteresttoB,thepartnershipshouldrecord theassetspaidtoAinitsaccountsattheirbookvalues.ANS:FDIF:2OBJ:0548.Whenanewpartnerisadmittedtoapartnership,bonusesattributabletoeitherth eoldpartnershiportotheiningpartnermayberecognizedinaccordancewiththeagre ementamongthepartners.ANS:TDIF:1OBJ:0549.Dissolutionisthetermwhichsolelymeanstoliquidatethepartnership. ANS:FDIF:1OBJ:0650.Inapartnershipliquidation,gainsandlossesonthesaleofpartnershipassetsa redividedamongthepartners'capitalaccountsonthebasisoftheircapitalbalance s.ANS:FDIF:2OBJ:0651.Iftheshareoflossesonrealizationofthesaleofnoncashassetsexceedthebalan ceinapartner'scapitalaccount,theresultingbalanceiscalledadeficiency. ANS:TDIF:1OBJ:0652.Inapartnershipliquidation,ifapartnerhasadebitcapitalbalanceinhisorher capitalaccount,heorsheisresponsibleforcontributingpersonalassetssufficie nttoeliminatethedeficit.ANS:TDIF:2OBJ:0653.Theprocessofwindinguptheaffairsofapartnershipisreferredtoasrealizatio n.ANS:FDIF:1OBJ:0654.Thedistributionofcash,asthefinalprocessinwindinguptheaffairsofapartnership,isbasedontheine-sharingratio.ANS:FDIF:2OBJ:0655.Ifapartner'scapitalbalanceisadebitafterithasabsorbeditsshareoftheloss onrealization,thebalanceisreferredtoasadeficiency.ANS:TDIF:1OBJ:0656.Intheliquidatingprocess,anyuncollectedcashbeesalosstothepartnershipan disdividedamongtheremainingpartners'capitalbalancesbasedontheirine-shari ngratio.ANS:TDIF:2OBJ:0657.Afterallnoncashassetshavebeenconvertedtocashandallliabilitiespaid,A,B ,andChavecapitalbalancesof$10,000(debit),$5,000(debit),and$25,000(credit ).Thecashavailablefordistributiontothepartnersis$10,000.ANS:TDIF:2OBJ:0658.Afterallnoncashassetshavebeenconvertedtocashandallliabilitiespaid,A,B ,andChavecapitalbalancesof$15,000(credit),$10,000(debit),and$30,000(cred it).C'sshareofthecashtobedistributedis$30,000.ANS:FDIF:2OBJ:0659.Aventurecapitalistisanindividualorfirmthatprovidescreditfinancingtoth epany.ANS:FDIF:1OBJ:0760.IPOisanacronymthatstandsforinitialpublicofferingANS:TDIF:1OBJ:0761.Underwritingfirmsorinvestmentbankershelpapanynotonlydeterminetheoffer ingpriceforitstock,butalsohelpmarketthestocktotheirclientsandthepublic. ANS:TDIF:1OBJ:07MULTIPLECHOICE1.Whichofthefollowingischaracteristicofageneralpartnership?a.Thepartnershaveco-ownershipofpartnershipproperty.b.Thepartnershipissubjecttofederalinetax.10.Accountingfortheday-to-dayactivitiesforapartnershiporLimitedLiability Corporationisa.thesameastheaccountingforanyotherformofbusinessb.thesameastheaccountingforasoleproprietorshiponlyc.isnotthesameastheaccountingforanyotherformofbusinessd.thesameastheaccountingforacorporationonlyANS:ADIF:1OBJ:0211.Whenapartnershipisformed,assetscontributedbythepartnersshouldberecord edonthepartnershipbooksattheira.bookvaluesonthepartners'bookspriortotheirbeingcontributedtothepartnershipb.fairmarketvalueatthetimeofthecontributionc.originalcoststothepartnercontributingthemd.assessedvaluesforpropertypurposesANS:BDIF:2OBJ:0312.Aspartoftheinitialinvestment,apartnercontributesequipmentthathadorigi nallycost$100,000andonwhichaccumulateddepreciationof$75,000hasbeenrecord ed.Ifsimilarequipmentwouldcost$150,000toreplaceandthepartnersagreeonaval uationof$40,000forthecontributedequipment,whatamountshouldbedebitedtothe equipmentaccount?a.$40,000b.$150,000c.$100,000d.$75,000ANS:ADIF:2OBJ:0313.Aspartoftheinitialinvestment,Oswaldcontributesaccountsreceivablethath adabalanceof$25,000intheaccountsofasoleproprietorship.Ofthisamount,$1,25 0ispletelyworthless.Fortheremainingaccounts,thepartnershipwillestablisha provisionforpossiblefutureuncollectibleaccountsof$750.TheamountdebitedtoAccountsReceivableforthenewpartnershipisa.$23,000b.$25,000c.$24,250d.$23,750ANS:DDIF:2OBJ:0314.JackandJillshareineandlossesina2:1ratioafterallowingforsalariestoJack of$24,000and$30,ineforthepartnershipis$48,000.Ineshouldbedi videdasfollows:a.Jack,$24,000;Jill,$24,000b.Jack,$21,000;Jill,$27,000c.Jack,$32,000;Jill,$16,000d.Jack,$20,000;Jill,$28,000ANS:DDIF:2OBJ:0415.FredandEthelshareineequally.Duringthecurrentyearthepartnershipnetinew as$40,000.Fredmadewithdrawalsof$12,000andEthelmadewithdrawalsof$17,000.A tthebeginningoftheyear,thecapitalaccountbalanceswere:Fredcapital,$42,000 ;Ethelcapital,$58,000.Fred'scapitalaccountbalanceattheendoftheyearisa.$76,500b.$64,500c.$62,000d.$50,000ANS:DDIF:2REF:0416.Partnershipineandlossesareusuallydividedonthebasisofinterest,salaries ,andstatedratiosbecausea.partnersseldomcontributetimeandresourcesequallyb.thismethodreflectstheamountoftimedevotedtothepartnershipbythepartnersc.itissimplerthanfollowingthelegalrulesd.itpreventsargumentsamongthepartnersANS:ADIF:1OBJ:0417.Aratioof3:2:1isthesameasa.30%:20%:10%b.1/2:1/3:1/6c.3/10:2/10:1/20d.both(a)and(c)ANS:BDIF:2OBJ:0418.CandDformapartnershipinwhichCcontributes$50,000inassetsandagreestodev otehalftimetothepartnership.Dcontributed$40,000inassetsandagreestodevote fulltimetothepartnership.HowwillCandDshareinthedivisionofine?a.5:8b.1:2c.1:1d.5:4ANS:CDIF:2OBJ:0419.XandYhaveoriginalinvestmentsof$50,000and$100,000respectivelyinapartne rship.Thearticlesofpartnershipincludethefollowingprovisionsregardingthed ivisionofnetine:interestonoriginalinvestmentat10%,salaryallowancesof$27, 000and$18,000respectively,andtheremainderequally.Howmuchofthenetineof$90 ,000isallocatedtoX?a.$60,000b.$43,000c.$45,000d.$47,000ANS:DDIF:3OBJ:0420.XandYhaveoriginalinvestmentsof$50,000and$100,000respectivelyinapartnership.Thearticlesofpartnershipincludethefollowingprovisionsregardingthed ivisionofnetine:interestonoriginalinvestmentat10%,salaryallowancesof$27, 000and$18,000respectively,andtheremainderequally.Howmuchofthenetineof$50 ,000isallocatedtoX?a.$33,333b.$23,000c.$25,000d.$27,000ANS:DDIF:3OBJ:0421.XandYhaveoriginalinvestmentsof$50,000and$100,000respectivelyinapartne rship.Thearticlesofpartnershipincludethefollowingprovisionsregardingthed ivisionofnetine:interestonoriginalinvestmentat10%,salaryallowancesof$27, 000and$18,000respectively,andtheremainderequally.Howmuchofthenetlossof$1 0,000isallocatedtoX?a.$10,000b.$3,000c.$5,000d.$7,000ANS:CDIF:3OBJ:0422.ThearticlesofpartnershipforABPartnershipprovideforasalaryallowanceof$ 5,000permonthforpartnerB,withthebalanceofnetinetobedividedequally.IfBmad eanadditionalinvestmentof$10,000duringtheyearandwithdrew$4,000permonth,a ndnetinefortheyearwas$90,000,bywhatamountdidB'scapitalincreaseduringthey ear?a.$85,000b.$10,000c.$37,000ANS:CDIF:3OBJ:0423.Ifthereisnowrittenagreementastothewayinewillbedividedamongpartnersa.theywillshareineandlossesequallyb.theywillshareineandlossesaccordingtotheircapitalbalancesc.theywillshareineandlossesaccordingtothetimedevotedtothebusiness.d.therereallyisnopartnershipagreementANS:ADIF:1OBJ:0424.PartnerAhasacapitalbalanceof$20,000anddevotesfulltimetothepartnership .PartnerBhasacapitalbalanceof$30,000anddevoteshalftimetothepartnership.I nwhatratioisnetinetobedivided?a.3:5b.1:1c.2:3d.1:2ANS:BDIF:2OBJ:0425.Detailsofthedivisionofnetineforapartnershipshouldbediscloseda.intheassetsectionofthebalancesheetb.inthepartners’subsidiaryledgerc.inthestatementofcashflowsd.intheinestatementANS:DDIF:2OBJ:0426.DengandDangarepartnerswhoshareineintheratioof3:2.Theircapitalbalances are$40,000and$60,000respectively.IneSummaryhasacreditbalanceof$20,000.Wh atisDeng'scapitalbalanceafterclosingIneSummarytoCapital?a.$30,000b.$52,000c.$28,000ANS:BDIF:2OBJ:0427.SelmapaysSally$39,000forher30%interestinapartnershipwithtotalnetasset sof$120,000.Followingthistransaction,Selma'scapitalaccountshouldhaveacre ditbalanceofa.$36,000b.$39,000c.$33,000d.morethan$39,000ANS:ADIF:3OBJ:0528.Nellieisadmittedtoanexistingpartnershipbyinvestingcash.Nellieagreesto payabonusforherownershipinterestbecauseofthepastsuccessofthepartnership. WhenNellie'sinvestmentinthepartnershipisrecordeda.hercapitalaccountwillbecreditedformorethanthecashsheinvestedb.hercapitalaccountwillbecreditedfortheamountofcashsheinvestedc.abonuswillbecreditedfortheamountofcashsheinvestedd.abonuswillbedistributedtotheoldpartners'capitalaccounts.ANS:DDIF:3OBJ:0529.PeterandPaularepartners.ThepartnershipcapitalofPeteris$40,000andPauli s$70,000.PetersellshisinterestinthepartnershiptoMaryfor$50,000.Thejourna lentrytorecordtheadmissionofMaryasanewpartnerwouldincludea.acredittoMary'scapitalfor$40,000b.acredittoPaul'scapitalfor$10,000c.acreditMary'scapitalfor$50,000d.acredittoMary'scapitalfor$40,000andacredittoPaul'scapitalfor$10,00ANS:ADIF:3OBJ:0530.Whenapartnerdies,thecapitalaccountbalancesoftheremainingpartnersc.$25,000d.$35,000ANS:CDIF:3OBJ:0534.Anewpartnermaybeadmittedtoapartnershipbya.inheritingapartnershipinterestb.contributingassetstothepartnershipc.purchasingaspecificquantityofassetsfromthepartnershipd.theconsentofthemajorityofthecurrentpartnersANS:BDIF:2OBJ:0535.Achangeintheownershipofapartnershipresultsinthea.consolidatingofthepartnershipb.liquidatingofthepartnershipc.realizationofthepartnershipd.dissolutionofthepartnershipANS:DDIF:1OBJ:0536.Whenanewpartnerisadmittedtoapartnership,thereshouldbea(n)a.revaluationofassetsb.realizationofassetsc.allocationofassetsd.returnofassetsANS:ADIF:1OBJ:0537.Whenanewpartnerisadmittedtoapartnership,thereshouldbea(n)a.thetotalassetsofthepartnershipincreaseb.newcapitalaccountisaddedtotheledgerforthenewpartnerc.thetotalowner'sequityofthepartnershipincreasesd.thecashreceivedbythecurrentpartnerrepresentstheamountofthedebittothatpartner'scapitalaccount.ANS:BDIF:2OBJ:0538.Whenanadditionalpartnerisadmittedtoapartnershipbycontributionofassets tothepartnershipa.thetotalassetsofthepartnershipdonotchangeb.noliabilitiescanbecontributedatthesametimec.theamountofthecashcontributionisthesameastheamountofthedebittothenewpartner'scapitalaccountd.thetotaloftheowner'sequityaccountsincreasesANS:DDIF:2OBJ:0539.Whenanewpartnerisadmittedtoapartnershipa.abonusmaybeattributabletotheoldpartnerb.abonusmayonlyresultfrommorecashbeinggivenbythenewpartnerthanthevalueoftheoftheassetsbeingpurchasedc.abonusagreeduponbythepartnersisrecordedasanassetsolongastheamountiswithintherangesetbytheSECd.abonusisnotrecordedANS:ADIF:2OBJ:0540.TheCDPartnershipownsinventorythatwaspurchasedfor$65,000,hasacurrentre placementcostof$62,500,andispricedtosellfor$95,000.Atwhatamountshouldthe inventoryberecordedintheaccountsofthenewpartnershipifAistobeadmitted?a.$97,000b.$62,500c.$65,000d.$95,000ANS:BDIF:2OBJ:0541.ImmediatelypriortotheadmissionofA,theXYPartnershipassetshadbeenadjust edtocurrentmarketprices,andthecapitalbalancesofXandYwere$40,000and$60,00 0respectively.Ifthepartiesagreethatthebusinessisworth$150,000,whatisthea mountofbonusthatshouldberecognizedintheaccountsattheadmissionofA?b.$0c.$40,000d.$50,000ANS:DDIF:2OBJ:0542.StanandOlliearepartnerswhoshareineintheratioof2:3andhavecapitalbalanc esof$50,000and$30,000respectively.Rayisadmittedtothepartnershipandisgive na40%interestbyinvesting$20,000.WhatisStan'scapitalbalanceafteradmitting Ray?a.$20,000b.$25,000c.$42,000d.$18,000ANS:CDIF:3OBJ:0543.StanandOlliearepartnerswhoshareineintheratioof2:3andhavecapitalbalanc esof$30,000and$50,000respectively.Rayisadmittedtothepartnershipandisgive na10%interestbyinvesting$20,000.WhatisOllie'scapitalbalanceafteradmittin gRay?a.$56,000b.$34,000c.$20,000d.$44,000ANS:ADIF:3OBJ:0544.Tim,Don,andHansarepartnerswithcapitalbalancesof$20,000,$30,000,and$50 ,000respectively.Theyshareineintheratioof3:2:1.IneSummarywithadebitbalan ceof$30,000isclosedtothecapitalaccounts.Donwithdrawsfromthepartnership.H owmuchcashdoeshegetuponwithdrawal?a.$30,000c.$40,000d.$24,000ANS:BDIF:3OBJ:0545.AandBarepartnerswhoshareineintheratioof1:2andhavecapitalbalancesof$40 ,000and$70,000atthetimetheydecidetoterminatethepartnership.Afterallnonca shassetsaresoldandallliabilitiesarepaid,thereisacashbalanceof$80,000.Wha tamountoflossonrealizationshouldbeallocatedtoA?a.$80,000b.$10,000c.$20,000d.$30,000ANS:BDIF:3OBJ:0646.Apartnershipliquidationoccurswhena.anewpartnerisadmittedb.apartnerdiesc.theownershipinterestofonepartnerissoldtoanewpartnerd.theassetsaresold,liabilitiespaid,andbusinessoperationsterminated ANS:DDIF:1OBJ:0647.ThebalancesheetofMarilynandMonroewasasfollowsimmediatelypriortothepar tnershipbeingliquidated:cash,$20,000;otherassets,$160,000;liabilities,$4 0,000;Marilyncapital,$60,000;Monroecapital,$80,000.Theotherassetsweresol dfor$139,000.MarilynandMonroeshareprofitsandlossesina2:1ratio.Asafinalca shdistributionfromtheliquidation,Marilynwillreceivecashtotalinga.$46,000b.$51,000c.$60,000d.$49,500ANS:ADIF:3OBJ:0648.JimmyJerryandJohnnydecidetoliquidatetheirpartnership.Allassetsaresold andtheliabilitiesarepaid.Followingthesetransactions,thecapitalbalancesan dprofitandlosspercentagesareasfollows:Jimmy,$27,000and30%;Jerry,$(12,000 )and40%;Johnny,$43,000and30%.Jerryisunabletocontributeanyassetstoreducet hedeficit.HowmuchcashwillJimmyreceiveasaresultsofthepartnershipliquidati on?a.$27,000b.$21,000c.$23,400d.$15,000ANS:BDIF:3OBJ:0649.Theremainingcashofapartnership(aftercreditorshavebeenpaid)uponliquida tionisdividedamongpartnersaccordingtotheira.capitalbalancesb.contributionofassetsc.drawingbalancesd.inesharingratioANS:ADIF:2OBJ:0650.Againorlossonrealizationisdividedamongpartnersaccordingtotheira.inesharingratiob.capitalbalancesc.drawingbalancesd.contributionofassetsANS:ADIF:2OBJ:0651.AandBarepartnerswhoshareineintheratioof3:2andhavecapitalbalancesof$50 ,000and$90,000atthetimetheydecidetoterminatethepartnership.Afterallnonca shassetsaresoldandallliabilitiesarepaid,thereisacashbalanceof$90,000.How muchcashshouldbedistributedtoA?b.$20,000c.$30,000d.$45,000ANS:BDIF:3OBJ:0652.X,Y,andZarepartners,sharingine1:2:3.Aftersellingalloftheassetsforcash ,dividinglossesonrealization,andpayingliabilities,thebalancesinthecapita laccountsareasfollows:X,$50,000Cr.;Y,$40,000Dr.;andZ,$30,000Cr.Howmuchca shisavailablefordistributiontothepartners?a.$120,000b.$30,000c.$40,000d.$90,000ANS:CDIF:3OBJ:0653.X,Y,andZarepartners,sharingine1:2:3.Aftersellingalloftheassetsforcash ,dividinglossesonrealization,andpayingliabilities,thebalancesinthecapita laccountsareasfollows:X,$50,000Cr.;Y,$40,000Dr.;andZ,$30,000Cr.Howmuchca shshouldbedistributedtoXassumingthatYpaysthedeficiency?a.$50,000b.$20,000c.$30,000d.$40,000ANS:DDIF:3OBJ:0654.X,Y,andZarepartners,sharingine1:2:3.Aftersellingalloftheassetsforcash ,dividinglossesonrealization,andpayingliabilities,thebalancesinthecapita laccountsareasfollows:X,$50,000Cr.;Y,$20,000Cr.;andZ,$30,000Dr.Assumetha taftertheavailablecashisdistributedtothepartners,Zpays$15,000ofthedefici encytothefirm.Howmuchofthe$15,000shouldbedistributedtoX?b.$0c.$5,000d.$10,000ANS:CDIF:3OBJ:06PROBLEM1.EdandFrankformapartnershipbybiningtheassetsoftheirseparatebusinesses.E dcontributesaccountsreceivablewithafaceamountof$50,000andequipmentwithac ostof$180,000andaccumulateddepreciationof$100,000.Thepartnersagreethatth eequipmentistobepricedat$70,000,that$2,500oftheaccountsreceivableareplet elyworthlessandarenottobeacceptedbythepartnership,andthat$1,500isareason ableallowancefortheuncollectibilityoftheremainingaccountsreceivable.Fran kcontributescashof$20,000andmerchandiseinventoryof$49,500.Thepartnersagr eethatthemerchandiseinventoryistobepricedat$51,000.Journalizetheentriest orecordinthepartnershipaccounts(a)Ed'sinvestmentand(b)Frank'sinvestment. ANS:a)AccountsReceivable......................47,500 Equipment................................70,000 AllowanceforDoubtfulAccounts........1,500Ed,Capital............................116,000(b)Cash.....................................20,000 MerchandiseInventory.............51,000Frank,Capital.........................71,000DIF:2OBJ:032.MaryHartmann,soleproprietorofahardwarebusiness,decidestoformapartnersh ipwithNedIsaacs.Mary'saccountsareasfollows:BookValueMarketValue---------------------------------Cash$20,000$20,000AccountsReceivable(net)52,00045,000Inventory112,000125,000Land40,000100,000Building(net)300,000340,000AccountsPayable25,00025,000MortgagePayable75,00075,000Nedagreestocontribute$70,000fora20%interest.Journalizetheentriestorecord (a)Mary'sinvestmentand(b)Ned'sinvestment.ANS:(a)Cash......................20,000AccountsReceivable.....45,000 Inventory.................125,000 Land......................100,000 Building..................340,000AccountsPayable........25,000MortgagePayable........75,000MaryHartmann,Capital..530,000(b)Cash......................70,000MaryHartmann,Capital....50,000NedIsaacs,Capital.....120,000DIF:3OBJ:353.CarlandDavidhavecapitalbalancesof$100,000and$300,000respectively.Carld evotesfulltimeandDavidone-halftimetothebusiness.Determinethedivisionof$9 0,000ofnetineundereachofthefollowingassumptions:(a)Noagreementastodivisionofnetine.(b)Inratioofcapitalbalances.(c)Inratiooftimedevotedtobusiness.(d)Interestof10%oncapitalbalancesandremainderequally.(e)Interestof10%oncapitalbalances,salariesof$40,000toCarland$20,000toDavid,andtheremainderequally.ANS:CarlDavidComputations---------------------(a)$45,000$45,000Carl:50%$90,000David:50%$90,000(b)$22,500$67,500Carl:1/4$90,000David:3/4$90,000(c)$60,000$30,000Carl:2/3$90,000David:1/3$90,000(d)$35,000$55,000Carl:[(10%$100,000)+(1/2$50,000)]David:[(10%$300,000)+(1/2$50,000)](e)$45,000$45,000Carl:[(10%x$100,000)+$40,000-(1/2$(10,000)]David:[(10%$300,000)+$20,000-(1/2$(10,000)]DIF:3OBJ:044.ClintonandDolehadcapitalbalancesof$120,000and$180,000respectivelyatthe beginningofthecurrentfiscalyear.Thearticlesofpartnershipprovideforsalary allowancesof$18,000and$20,000respectively,anallowanceofinterestat12%onth ecapitalbalancesatthebeginningoftheyear,withtheremainingnetinedividedequ ineforthecurrentyearwas$100,000.(a)Presenttheinedivisionsectionoftheinestatementforthecurrentyear.(b)Assumingthatthenetinehadbeen$50,000insteadof$100,000,presenttheinediv isionsectionoftheinestatementforthecurrentyear.ANS:(a) Netine............................$100,000CDTotalDivisionofnetine:----------------------Salaryallowance...........$18,000$20,000$38,000Interestallowance.........14,40021,60036,000 Remainingine...........13,00013,00026,000----------------------Netine...................$45,400$54,600$100,000===============(b)Netine....................$50,000Divisionofnetine:Salaryallowance............$18,000$20,000$38,000 Interestallowance..........14,40021,60036,000----------------------Total.....................$32,400$41,600$74,000Excessofallowancesovernetine.12,00012,00024,000----------------------Netine....................$20,400$29,600$50,000==================DIF:3OBJ:02,045.CandDhadcapitalbalancesof$60,000and$120,000respectivelyonJanuary1ofthe currentyear.OnMay8,Cinvestedanadditional$10,000inthepartnership.Duringth eyear,CandDwithdrew$25,000and$35,000respectively.Afterclosingallexpensea ndrevenueaccountsattheendoftheyear,IneSummaryhasacreditbalanceof$90,000. Thenetineisdividedintheratioof2:3afterasalaryallowanceof$40,000toC.(a)Journalizetheentriestoclosetheinesummaryaccountandthedrawingaccounts.(b)Preparethestatementofowner'sequityforthecurrentyear.ANS:(a)IneSummary.......................90,000C,Capital.............................60,000D,Capital.............................30,000C,Capital...............................25,000D,Capital...............................35,000C,Drawing.............................25,000D,Drawing.............................35,000(b)CandDStatementofOwner'sEquityForYearEndedDecember31================================================== ===========CDTotal------------------------Capital,January1......$60,000$120,000$180,000Additionalinvestmentduringtheyear.............10,000----10,000------------------------$70,000$120,000$190,000Netinefortheyear......60,00030,00090,000------------------------$130,000$150,000$280,000Withdrawalsduringtheyear...25,00035,00060,000------------------------Capital,December31$105,000$115,000$220,000====================DIF:1OBJ:02,046.BenGumbelandFredHowe,partnerssharingnetineintheratioof2:1,admitAlanBro kawtothepartnershipinaccordancewiththefollowingagreement:(1)Merchandiseinventoryrecordedinthepartnershipaccountsat$62,500istobere valuedatitscurrentreplacementpriceof$67,000.(2)Brokawistoinvest$48,000incashfora30%interestinthepartnership,whichhastotalnetassets(assetsminusliabilities)of$130,000aftertheinventoryisreval ued.(3)Theine-sharingratioofGumbel,Howe,andBrokawistobe2:1:1.(a)Journalizetheentriestorecordtherevaluationofmerchandiseinventory,andt headmissionofBrokawtothepartnership.(b)Afewyearslater,thecapitalbalancesofGumbel,Howe,andBrokawwere$140,000, $90,000,and$55,000respectively.Atthistime,MarvinKingisadmittedtothepartn ershipbythepurchaseofone-halfofGumbel'sinterestfor$80,000.Journalizethee ntrytorecordtheadmissionofKingtothepartnership.ANS:(a)MerchandiseInventory...........4,500BenGumbel,Capital.....................3,000FredHowe,Capital......................1,500 Cash......................................48,000BenGumbel,Capital.....................6,000FredHowe,Capital......................3,000AlanBrokaw,Capital....................39,000(b)BenGumbel,Capital..............70,000MarvinKing,Capital....................70,000DIF:3OBJ:057.AnneKlineandBethLewis,partnersinClassyBoutique,havecapitalbalancesof$40, 000and$60,000respectively.CarolMartinjoinsthepartnershipbybuyingone-half ofAnne'sinterestfor$30,000.Inaddition,becauseofCarol'soutstandingsalessk ills,thepartnersagreetoincreaseherinterestto40%ifsheinvestsanother$10,000.Theine-sharingratioofKline,Lewis,andMartinis4:3:1.(a)JournalizetheentriestorecordtheadmissionofMartintothepartnership.(b)ImmediatelyafterMartin'sadmissiontothepartnership,Lewissellsone-fourt hofherinteresttoDebNewtonfor$35,000.Journalizetheentrytorecordthistransaction.ANS:(a)AnneKline,Capital..............20,000CarolMartin,Capital.............20,000 Cash................................10,000AnneKline,Capital...............8,000BethLewis,Capital...............6,000CarolMartin,Capital.............24,000(b)BethLewis,Capital.............13,500DebNewton,Capital...............13,500DIF:3OBJ:058.Immediatelypriortotheprocessofliquidation,partnersM,N,andOhavecapitalb alancesof$70,000,$20,000,and$30,000respectively.Thereisacashbalanceof$10 ,000,noncashassetstotal$160,000,andliabilitiestotal$50,000.Thepartnerssh arenetineandlossesintheratioof2:2:1. Journalizetheentriestorecordtheliquidationoutlinedbelow,usingAssetsasthe accounttitleforthenoncashassetsandLiabilitiesastheaccounttitleforallcred itors'claims.(a)Soldthenoncashassetsfor$80,000incash.(b)Dividedthelossonrealization.(c)Paidtheliabilities.(d)Receivedcashfromthepartnerwiththedeficiency.(e)Distributedthecashtothepartners.ANS:(a)Cash....................................80,000 LossonRealization..................80,000 Assets................................160,000(b)M,Capital..............................32,000N,Capital..............................32,000O,Capital..............................16,000 LossonRealization...................80,000(c)Liabilities.............................50,000 Cash..................................50,000(d)Cash....................................12,000N,Capital............................12,000(e)M,Capital..............................38,000O,Capital..............................14,000 Cash..................................52,000DIF:3OBJ:069.Afterdiscontinuingtheordinarybusinessoperationsandclosingtheaccountson May7,theledgerofthepartnershipofA,B,andCindicatedthefollowing: Cash..............................$7,500 NoncashAssets...............105,000 Liabilities.......................$27,500A,Capital........................45,000B,Capital........................15,000C,Capital........................25,000----------------$112,500$112,500================Thepartnerssharenetineandlossesintheratioof3:2:1.BetweenMay7-30,thenonca shassetsweresoldfor$120,000,theliabilitieswerepaid,andtheremainingcashwa sdistributedtothepartners.(a)Prepareastatementofpartnershipliquidation.(b)Assumethesamefactsasin(a),exceptthatthenoncashassetsweresoldfor$45,00 0andanypartnerwithacapitaldeficiencypaystheamountofthedeficiencytothepar tnership.Prepareastatementofpartnershipliquidation.ANS:。

1. In which of the following depreciation methods are the depreciation costs the highest in the first year of the asset's life?Choose onea. decreasing residue methodb. production method of depreciationc. under none of the above depreciation methodsd. linear depreciation methodA2. Are not external users of accounting information:Choose onea. tax authoritiesb. suppliersc. trade unionsd. potential investorse. managersf. current creditorsE3.Which of the following does NOT belong to the minimum required information to be presented on the face of the statement of comprehensive income in accordance with International Financial Reporting Standards?Choose onea. the dividends distributed during the yearb. tax costsc. components of other comprehensive incomed. incomee. total comprehensive income for the periodf. profit or loss from discontinued operationsg. financial costsF4. The variable overhead costs are:Choose onea. those direct and indirect (indirect) costs that directly depend on changes in production volume, such as direct and indirect laborb. all major technological costs of productionc. any additional production costsd. those indirect costs that change directly or almost directly depending on changes in production volume, such as indirect labor and indirect materialse. those direct costs that change directly or almost directly depending on changes in production volume, such as direct labor and direct materialsD5.Which of the following is NOT a criterion for classifying a liability as current?Choose onea. the liability is held primarily for commercial purposesb. the liability is expected to be settled within 12 m after the end of the reporting periodc. the enterprise has no unconditional right to postpone the settlement of the obligation by at least 12 months after the end of the reporting periodd. the liability is expected to be settled within the normal operating cycle of the entitye. there is no correct answerE6. At the end of the reporting period it is established that the provision accrued during the previous reporting period was overestimated by BGN 20,000. What accounting item should be drawn up in this case?Choose onea. Debit account "Provisions for warranty service" 20 000, Credit account "Other income" 20 000b. Debit account "Provisions for warranty service" 20 000, Credit account "Sales revenues" 20 000c. Debit account "Provisions for warranty service" 20 000, Credit account "Other expenses" 20 000d. Debit account "Expenses for provisions" (20 000), Credit account "Provisions for warranty service" (20 000) - by the red reversal methodD7.Which of the following is NOT an outgoing cash flow from investing activities for a manufacturing enterprise?Choose onea. Repurchase of own sharesb. Cash payments for the purchase of a software productc. Loan granted to a subsidiaryd. Cash payments for the purchase of investments in associatese. All of the above are cash outflows from investing activitiesf. Advance paid for the purchase of a machineE8. The accounting of the impairment of materials is as follows:Choose onea. We debit the account "Expenses for impairment of inventories" and credit the account "Impairment of materials", but with negative amountsb. We debit the account "Impairment of materials" and credit the account "Expenses for impairment of inventories"c. We debit the "Materials" account and credit the "Materials Impairment" accountd. We debit the account "Impairment of materials" and credit the account "Expenses for impairment of inventories", but with negative amountse. We debit the account "Expenses for impairment of inventories" and credit the account "Impairment of materials"f. We debit the account "Impairment of materials" and credit the account "Other expenses"B9. The initial malt on the account "Provisions for warranty service" is BGN 12,000. The accrued expenses for provisions during the reporting period are BGN 45,000. the following accounting item is drawn up:Choose onea. Debit account "Costs for provisions" 60 000, Credit account "Provisions for warranty service"60 000b. Debit account "Provisions for warranty service" 45 000, Debit account "Other expenses" 15 000, Credit account "Cash" 60 000c. Debit account "Provisions for warranty service" 57 000, Debit account "Expenses for provisions" 3 000, Credit account "Cash" 60 000d. Debit account "Expenses for provisions" 60 000, Credit account "Cash" 60 000e. Debit account "Provisions for warranty service" 60 000, Credit account "Cash" 60 000f. Debit account "Provisions for warranty service" 45 000, Debit account "Expenses for provisions"15 000, Credit account "Cash" 60 000F10.Which of the following is NOT a component of equity?Choose onea. fixed capitalb. legal reservesc. revaluation reserved. uncovered loss from previous yearse. financing for the acquisition of a tangible fixed assetf. premium reserveE11. What accounting item is compiled for reporting a received bank loan in the amount of BGN 120,000. Upon concluding the loan agreement, the enterprise has paid a management fee for the bank's tariff in the amount of BGN 6,300?Choose onea. Dt s / ka Skonto by financial instruments 6 300 and Dt s / ka Current account in BGN 113 700; Long-term bank loans received 120,000b. Dt s / ka Current account in BGN 120,000; Kt s / ka Long-term bank loans received 120 100c. Dt s / ka Received long-term bank loans 120,000; Kt s / ka Skonto by financial instruments 6 300 and Kt s / ka Current account in BGN 113 700d. Dt s / ka Current account in BGN 113,700; Long-term bank loans received 113,700C12. For which inventory do special accounting regulations apply, given its characteristics? Choose onea. unfinished construction under construction contractsb. delivery of goods by importc. unfinished delivery of auxiliary materialsd. combustible materialse. productsf. work in progressA13.Which of the following statements concerning the exchange of a tangible fixed asset for another asset is true?Choose onea. The cost of acquiring the asset received is equal to the carrying amount of the leased asset, less any payments made by the enterprise, plus the payment received by the company that leases the asset to the enterprise.b. If the asset is acquired for exchange with another non-monetary asset or with a combination of monetary and non-monetary assets, then the acquisition cost is the fair value of the leased assetc. If the asset is acquired in exchange for another non-monetary asset or a combination of monetary and non-monetary assets, then the acquisition cost is the fair value of the asset received if the transaction is of a non-commercial natured. A transaction is considered to be of a commercial nature if the cash flow scheme associated with the asset received, in terms of time, amount and risk, coincides with the cash flow scheme of the leased asset.e. If the fair value of the asset received cannot be determined, then the cost of acquisition is equal to the carrying amount of the leased asset, adjusted for cash payments.f. All these statements are not trueE14.Which of the following is NOT incoming cash flow from operating activities?Choose onea. Cash receipts from sale of productsb. Cash receipts of an insurance company from insurance premiumsc. Dividends received from holding companiesd. Cash receipts from commissionse. Interest received on loans from a financial institutionf. All specified cash inflows are from core businessC15.Which of the following methods for writing off inventories and determining the cost of sales is NOT eligible under International Financial Reporting Standards?Choose onea. last incoming, first outgoing priceb. all the listed assessment methods are acceptablec. method of specific identificationd. first incoming, first outgoing pricee. floating weighted average priceA16. The cancellation of impairment of materials reported in previous reporting periods may occur as:Choose onea. We debit the account "Impairment losses" and credit the account "Impairment of materials"b. We debit the "Materials" account and credit the "Materials Impairment" accountc. We debit the account "Impairment of materials" and credit the account "Other income"d. We debit the account "Impairment of materials" and credit the account "Recovered impairment"e. We debit the "Materials" account and credit the "Impairment losses" accountf. We debit the account "Impairment of materials" and credit the account "Impairment costs", but with negative amountsg. We debit the account "Impairment of materials" and credit the account "Materials"F17.If the fair value less costs to sell of an item of property, plant and equipment exceeds its carrying amount, it:Choose onea. its value in use must be determinedb. the present value of the deferred sale value must also be calculatedc. the asset is not impaired and it is not necessary to determine its value in used. it must be assumed that the asset is impairedC18. Research costs incurred by the enterprise:Choose onea. should be recognized as an intangible assetb. they must be recorded as current expenses for the period in which they are incurredc. should be accounted for as a reduction in development costsd. must be accounted for as an expense for future periodsB19.Which of the following information should NOT be disclosed in the notes to the financial statements based on International Financial Reporting Standards?Choose onea. management's estimates to determine accounting estimatesb. the basis for the preparation of the financial statements of the enterprisec. selected accounting policies of the enterprised. the total amount of dividends offered or declared prior to the approval of the financial statements for publication that were not recognized as a distribution of equity to owners for the periode. information required by International Financial Reporting Standards that is not presentedelsewhere in the financial statementsf. each of the above information must be disclosedg. the valuation base (s) used in the preparation of the financial statementsh. the judgments made by management in the process of implementing its accounting policiesD20. The issue of 95,000 ordinary shares with a nominal value of BGN 1 per share and an issue value of BGN 1.10 / share by an enterprise shall be accounted for with the following accounting item:Choose onea. Dt s / ka Share capital 95 000 and Dt s / ka Reserve from issue of shares 9 500; Kt Current account in BGN 104,500b. Dt s / ka Share capital 95 000; Kt s / ka Reserve from issue of shares 95 000c. Dt s / ka Current account in BGN 104,500; Kt s / ka Share capital 95 000 and Kt s / ka Reserve from issue of shares 9 500d. Dt s / ka Current account in BGN 104,500; Kt s / ka Share capital 104 500C21.Which of the following is NOT included in the group of cash and cash equivalents?Choose onea. all of the above are includedb. current account balancesc. cashd. investments in quarterly government securitiese. quarterly bank depositf. long-term blocked fundsF22.Which of the following statements concerning property, plant and equipment is NOT true? Choose onea. Borrowing costs are always capitalized in the amount of the property, plant and equipment acquiredb. Spare parts are usually accounted for as inventories and current consumption is accounted for when usedc. If appropriate, the entity may group insignificant assets separately and apply the criteria for recognizing property, plant and equipment to their total value.d. Tangible fixed assets acquired for security or environmental reasons may be recognized as separate property, plant and equipment.e. The costs of major inspections must be added (capitalized) to the carrying amount of property, plant and equipment if the recognition criteria are met.f. If basic spare parts and service equipment are used during more than one reporting period or only in connection with a tangible fixed asset, they are reported as property, plant and equipment.g. Expenses related to the daily maintenance of property, plant and equipment are recognized ascurrent for the period in which they are incurred.A23.Which of the following is not a non-current asset under International Financial Reporting Standards?Choose onea. investments in associatesb. income for future periodsc. facilitiesd. software productse. investment propertyf. improvements on the groundB24.Which of the following does not fall within the scope of financial accounting?Choose onea. there is no correct answerb. annual accounting closingc. preparation of financial statementsd. presentation of financial statementse. current accountingf. preparation of the annual budget of revenues and expendituresF25. Which of the following accounting items will be used to report the printer purchased for the needs of the marketing department, worth BGN 2,400, incl. 20% VAT, as the threshold for capitalization of properties, machinery and equipment is BGN 2,200:Choose onea. Dt s / ka Expenses for materials - assets below the value threshold 2 000 and Dt s / ka VAT purchases 400; Kt s / ka Current account in BGN 2,400b. Dt s / ka Material costs - assets below the value threshold 2,000; Kt s / ka Current account in BGN 2,000c. Dt s / ka Printer 2,000; Kt s / ka Current account in BGN 2,000d. Dt s / ka Expenses for acquisition of tangible fixed assets 2 400; Kt s / ka Current account in BGN 2,400A26.In most business transactions leading to a trade receivable, it is initially assessed:Choose onea. based on the exchange price agreed between the two parties to the transactionb. at its value in usec. at its reproductive valued. at its net realizable valuee. at its recoverable amountf. at its current value at the date of saleA27.Which statement about the net realizable value of inventories is NOT true?Choose onea. Net realizable value is always determined based on the market price of inventoriesb. For each subsequent period a new estimate of the net realizable value is madec. The impairment to net realizable value takes place on separate items of inventoriesd. The determination of net realizable value is based on an approximate accounting estimatee. The net realizable value depends on the contracts concluded by the enterprise, if anyf. When the conditions that led to the depreciation of inventories below their cost are no longer present, the previous value of the impaired inventories is re-adopted.g. The net realizable value is an indicator of the recoverable amount of inventories, given their liquidityh. The net realizable value depends on the selling expenses, which are specific and may be different for different companiesA28.Bulgarian accounting legislation does NOT include:Choose onea. Independent Financial Audit Actb. Accountancy Actc. Value Added Tax Actd. National accounting standardse. Law on the Public Offering of Securitiesf. Corporate Income Tax Actg. International Financial Reporting StandardsG29. The delivery value of purchased inventories does NOT include:Choose onea. finishing costsb. loading and unloading costsc. transport costsd. customs duties and taxese. purchase pricef. overhead costsg. commissions paid in connection with the purchaseF30.Which of the following does NOT belong to the minimum required information to be presented on the face of the statement of changes in equity in accordance with International Financial Reporting Standards?Choose onea. all of the above belong to the minimum required informationb. correction of significant errors from previous periods, if anyc. share capitald. revaluation reservee. retained earnings / uncovered lossf. premiums from the issue of shares / unitsg. reserves from recalculations in foreign currencyA31.Which of the following costs is not included in the cost of an asset in the group of property, plant and equipment?Choose onea. installation costsb. all listed costs are included in the acquisition price (cost)c. the estimated costs of dismantling and removing the asset and restoring the sited. delivery costse. the costs of site preparationf. import dutiesg. the cost of training staff to work with the asseth. purchase priceG32. Development costs incurred by the enterprise:Choose onea. are recognized as an asset and the cost of research is added to themb. are recognized as an asset only if they meet certain criteriac. are recognized as current expenses for the period in which they are incurredd. are recognized as a loss because the expected economic benefit against them is uncertaine. are recognized as deferred expensesB33.Which of the following costs are included in the cost of inventories?Choose onea. selling expensesb. non-production costs incurred in connection with bringing the inventories in the required conditionc. administrative costsd. input materials outside the norme. warehouse costsf. costs of exchange rate changesB34. An enterprise issues 10,000 ordinary shares with a nominal value of BGN 1 per share. The issue value is BGN 1.10 per share. The following accounting item must be prepared for theaccounting reflection of the issue:Choose onea. Cash debit account 11,000, Fixed capital credit account 10,000, Issue premiums credit account 1,000b. Debit account "Cash" 11 000, Credit account "Fixed capital" 10 000, Credit account "Additional capital" 1 000c. Cash debit account 10,000, Issue premiums debit account 1,000, Fixed capital credit account 11,000d. Cash debit account 11 000, Credit account "Income from operations with financial assets" 1 000, Credit account "Fixed capital" 10 000e. Debit account "Cash" 11 000, Credit account "Fixed capital" 11 000A35.Which of the following statements is NOT true?Choose onea. It is required to preserve the presentation and classification of the items in the financial statements during the reporting periodsb. Each significant class of related items must be presented separately in the financial statementsc. Revenues and expenses can be reimbursed only under certain conditionsd. All statements are truee. Instead of one statement of comprehensive income for the period, companies may submit two statements - a profit or loss statement for the year and a statement of comprehensive income.f. Comparative information for the previous reporting period is required for all digital informationg. The financial statements are presented at least once a yearh. The financial review by the management of the company is an integral part of its financial statements prepared on the basis of International Financial Reporting Standards.H36. The purchased machine is included in the fixed tangible assets of the enterprise under inventory number 124 and is accounted for at the acquisition price of BGN 96,400. The accounting of this business operation is:Choose onea. Dt s / ka Costs for acquisition of a machine 96 400; Kt s / ka Machine 96 400b. Dt s / ka Costs for acquisition of a machine 96 400; Kt s / ka Suppliers 96 400c. Dt s / ka Machine 96 400; Kt s / ka Costs for acquiring a machine 96 400d. Dt s / ka Machine 96 400; Kt s / ka Delivery 96 400C37.Which of the following accounting items are accrued dividends for BGN 3,700 in connection with the owned investments of the enterprise in subsidiaries:Choose onea. Dt s / ka Dividend receivables 3,700; Kt s / ka Dividend income 3,700b. Dt s / ka Dividend income 3,700; Kt s / ka Dividend receivables 3,700c. Dt s / ka Investments in subsidiaries 3,700; Kt s / ka Dividend income 3,700d. Dt s / ka Dividend receivables 3,700; Kt s / ka Investments in subsidiaries 3 700A38.Which of the following statements about the differences between financial (FS) and management accounting (MB) is NOT true?Choose onea. All statements are trueb. FS and MB solve different tasksc. FS and MB use different methodologies and procedural techniquesd. All statements are wronge. FS and MB use the same classification and analyticity of the reporting objectsf. The FS and the MB apply the same accounting methodg. FS and MB have the same subjectE39. The management of Jasmine AD prepares a draft financial statement on January 17, which is submitted for approval by the Board of Directors on February 25. The Board of Directors authorized the report for issue on February 25. Shareholders approve the financial statements on March 17. On March 5, a major customer of the company was declared bankrupt. In this regard, the company has taken one of the following actions:Choose onea. adjusts the disclosures in the financial statements in connection with the event and takes action to authorize the report for issuanceb. does not take any action related to the financial statementsc. adjusts the financial statement by depreciating the receivable from the client and warns the Board of Directors of the adjustments maded. adjusts the financial statement by depreciating the receivable from the client and takes new actions for re-authorization of the financial statement for issuancee. there is no correct answerD40. The accounting of the actual costs incurred for warranty service requires the compilation of the following accounting item:Choose onea. Debit account "Guarantee service provisions", Credit account "Cash"b. Debit account "Costs for provisions", Credit account "Provisions for warranty service"c. Debit account "Provisions for warranty service", Credit account "Expenses for provisions"d. Debit account "Cash", Credit account "Provisions for warranty service"e. All listed accounting items are wrongf. Debit account "Guarantee service provisions", Credit account "Other income"A41.Which of the following statements about inventories is NOT true?Choose onea. There are difficulties in quantitative measurement of inventories due to the various costs that form their value (cost)b. The classification of inventories must be consistent with the nature of the enterprise's operationsc. A problem in practice is the write-off of inventories when used in the activity, as there is a difference between the physical flow of inventories and value movements (flows)d. Inventories must be presented in the financial statements at the higher of their delivery value (cost) and their net realizable value.e. Inventories are directly related to liquidity and turnover, which characterize the production activity of the enterprisef. Inventories are material goods and they are materially responsibleD42.Which of the following statements concerning intangible assets is NOT true?Choose onea. Intangible assets are stated in the statement of financial position at their carrying amountb. When amortizing intangible assets, the straight-line method is mandatoryc. The cost of acquiring an intangible asset does not include the cost of training staff to work with the assetd. Intangible assets are subject to impairmente. Subsequent measurement of intangible assets may take place at historical cost or at revalued (fair) valueB43.Which of the following is NOT an incoming cash flow from financing activities for a manufacturing enterprise?Choose onea. Cash proceeds from bond issueb. All of these are cash inflows from financing activitiesc. Bank loan receivedd. Funding received under a European programe. Cash proceeds from the issue of sharesf. Payment received on the principal of a loan granted to an associateB44.Which of the listed assets is NOT included in the group of inventories?Choose onea. goodsb. materialsc. goods on the roadd. productse. semi-finished productsf. all of the listed assets are includedF45.Which of the following factors should not be taken into account when determining the useful life of property, plant and equipment?Choose onea. the expected use of the asset by the enterpriseb. the expected physical depletion of the assetc. the technical obsolescence of the assetd. the depreciable value of the assete. legal or other restrictions on the use of the assetf. the commercial obsolescence of the assetD46. On 01.09.2019 Maritza OOD received a loan in the amount of BGN 320,000. The loan is repayable in 16 equal quarterly installments. The first installment is due on December 1, 2019. All installments are made on the due date. How should the balance of the debt be presented as of 31.12. 2020 in the statement of financial position as of that date?Choose onea. as a non-current liability of BGN 80,000 and a current liability of BGN 140,000.b. there is no correct answerc. as a non-current liability BGN 220,000.d. as a non-current liability of BGN 140,000 and a current liability of BGN 80,000.e. as a current liability BGN 220,000.D47. The increase of the fixed capital cannot take place:Choose onea. against in-kind contribution of a partnerb. against the destruction of repurchased sharesc. through a new issue of sharesd. against repayment of an obligation of the enterprise to a suppliere. at the expense of retained earnings from previous yearsf. against the conversion of bonds into sharesD48.Which of the following is NOT an outflow of cash from operating activities?Choose onea. Cash payments of benefits from an insurance companyb. Dividends paidc. Cash payments to staffd. Cash payments to suppliers of goodse. Corporate tax paidf. Loans from a financial institutionF49.Which accounting item reflects a shareholder's contribution to the company's capital in the form of a building worth BGN 98,000, corresponding to subscribed but unpaid shares of the company?Choose onea. Dt s / ka Building 98 000; Kt s / ka Receivables on subscribed share contributions 98 000b. Dt s / ka Building 98 000; Kt s / ka Fixed capital 98 000c. Dt s / ka Share capital 79 000; Kt s / ka Building 98 000d. Dt s / ka Receivables on subscribed share contributions 98 000; Kt s / ka Building 98 000D50.Which of the following costs are included in the cost of inventories?Choose onea. warehouse costsb. costs of exchange rate changesc. non-production costs incurred in connection with bringing the inventories in the required conditiond. selling expensese. administrative costsf. input materials outside the normC。

Examination Problems for Fundamentals of Financial Management 2004-2005 (Paper B)overall goal in mind.A. Financial managementB. Profit maximizationC. Agency theoryD. Social responsibility2.A major disadvantage of the corporate form of organization is the ( ).A. double taxation of dividendsB. inability of the firm to raise large sums of additional capitalC. limited liability of shareholdersD. limited life of the corporate form.3. Interest paid (earned) on both the original principal borrowed (lent) and previous interest earned is often referred to as ( ).A. present valueB. simple interestC. future valueD. compound interest4. If the intrinsic value of a share of common stock is less than its market value, which of the following is the most reasonable conclusion?A. The stock has a low level of risk.B. The stock offers a high dividend payout ratio.C. The market is undervaluing the stock.D. The market is overvaluing the stock.5. A 250 face value share of preferred stock, pays a 20 annual dividend and investors require a 7% return on this investment. If the security is currently selling for 276, what is the difference (overvaluation) between its intrinsic and market value (rounded to the nearest whole dollar)?A. approximately 26B. approximately 10C. approximately 6D. approximately 16. Felton Farm Supplies, Inc., has an 8 percent return on total assets of 300,000 and a net profit margin of 5 percent. What are its sales?A. 3,750,000B. 480,000C. 300,000D. 1,500,0007. A company can improve (lower) its debt-to-total asset ratio by doing which of the following?A. Borrow more.B. Shift short-term to long-term debt.C. Shift long-term to short-term debt.D. isssue common stock.8. The DuPont Approach breaks down the earning power on shareholders' book value (ROE) as follows: ROE = ( ).A. Net profit margin × Total asset turnover × Equity multiplierB. Total asset turnover × Gross profit margin × Debt ratioC. Total asset turnover × Net profit marginD. Total asset turnover × Gross profit margin × Equity multiplier9. Which of the following items concerns financing decision? ( )A. sales forecastingB. bond issuingC. receivables collectionD. investment project selection10. Which of the following items is the function of a treasurer? ( )A. cost accountingB. internal controlC. capital budgetingD. general ledger11. For financial instruments, ( ) is judged in relation to the ability to sell a significant volume of securities in a short period of time without significant price concession.A. maturityB. marketabilityC. defaultD. inflation12. ( ) is the value at some future time of a present amount of money, or a series of payments, evaluated at a given interest rate.A. future valueB. present valueC. intrinsic valueD. market value13.Ellesmere Corporation issues 1 million $1 par value bonds. The stated interest rate is 6% per year and the interest is paid twice a year. What is the real interest rate of the bond? ( )A. 6%B.3%C. 12%D. (1+6%/2)2-114. Assume that dividends of a common stock will be maintained at D forever, and the required return of the stockholder is r, the par value of the stock is m, the value of the stock is ( )A. mB. m+DC. m+D/rD. D/r15. Which of the following items has the most risk? ( )A. treasury billB. corporate bondC. preferred stockD. common stock16. ( ) equals the gross profit divided by net sales of a firm.A. gross profit marginB. net profit marginC. return on investmentD. return on equity17. ( A ) is the ratios that measure a firm’s ability to meet short-term obligationsA. liquidity ratiosB. leverage ratios c. coverage ratios D. activity ratios18. ( A ) is the result of Net Profi t Margin × total asset turnover × (total assets/shareholders’ equity)A. Return on equityB. return on investmentC. current ratioD. quick ratio19. Government tax law adjustment is ( A ) to a firm.A. general economic riskB. inflation and deflation riskC. firm-specific riskD. international risk20 ( A ) equals the gross profit divided by net sales of a firm.A. gross profit marginB. net profit marginC. return on investmentD. return on equity II. Statement judgement (10 Points) (Please write your answer in the following1. Until around the first half of the 1900s, financial managers primarily raised funds and managed their firm’s cash positions. ( )2. In general, the higher the marketability of a security, the greater the yield necessary to attract investors ( )3. Discount Rate is the interest rate used to convert future values to present values. ( )4. The expected return of a portfolio is simply a weighted average of the expected return of the securities comprising that portfolio ( )5. The type of analysis varies according to the specific interests of the party involved ( )6. In a sole proprietorship, the owner is personally responsible for all financial obligations of thefirm. ( )7. When a stock goes "ex-rights, " its market price theoretically declines. ( )8. The market price of a particular bond is much greater today than it was yesterday. The calculated yield to maturity (YTM) based on today's market price would, therefore, be greater than the calculated YTM based on yesterday's market price. ( )9. A short average collection period assures us that accounts receivable are being efficiently managed. ( )10. Simple interest is interest that is paid on only the original amount borrowed (lent) ( )III. Questions (10 points) (Please write your answer on the answer paper)1. The method of depreciation does not alter the total amount deducted from income during the life of an asset. What does it alter and why is that important? (5 )2. What is primary and secondary market? (5)IV. Problems (60 Points) (Please write your answer on the answer paper)1. you need to have $100000 at the end of 10 years. To accumulate this sum, you have decided to save a certain amount at the end of each next 10 years and deposit it in the bank. The bank pays 8% interest compounded annually for long-term deposit. How much will you have to save each year? (PVIF(8%,10)=0.463, PVIFA(8%,10)=0.671, FVIF(8%,10)=2.159, FVIFA(8%,10)=14.487)2.Just today, Bird Seed Company’s common stock paid a $1.50 annual dividend per share and hada closing price of $24. Assume that the market’s required return for this investment is 12% and that dividends are expected to grow at a constant rate forever.a. calculate the implied growth rate in dividends.b. what is expected dividend yield and capital gains yield?3. The data for various companies in the same industry are as follows: (amounts are in millionDetermine the total asset turnover, net profit margin, and write your computation result in the table.4. You expect to deposit the following cash flows at the end of years 1 through 5, 1,000; 4,000; 9,000; 5,000; and 2,000 respectively. Alternatively, you could deposit a single amount today at the beginning of year 1 (end of year 0). How much is the single deposit needed to be today if you can earn 10% compounded annually? (10/ )5.Stock A has an expected growth rate of 16% for the first 3 years and 8% thereafter. Each share of stock just received an annual 3.24 dividend per share. The appropriate discount rate is 15%.What is the value of the common stock under this scenario? (10/ )6. The following common stocks are available for investment:COMMON STOCK (TICKER SYMBOL) BETANanyang Business Systems (NBS) 1.40Yunnan Garden Supply, Inc. (YUWHO) .80Bird Nest Soups Company (SLURP) .60! (WACHO) 1.80Park City Cola Company (BURP) 1.05Oldies Records, Ltd. (SHABOOM) .90a. If you invest 20 percent of your funds in each of the first four securities, and 10 percent in each of the last two, what is the beta of your portfolio? (5/ )b. If the risk-free rate is 8 percent and the expected return on the market portfolio is 14 percent, what will be the portfolio's expected return? (5/ )Solutions (B)1. Depreciation changes the timing of tax payments. The longer these payments can be delayed, the better off the business is.2. A primary market is a “new issues” market. Here, funds raised through the sale of new securities flow from ultimate savers to the ultimate investors in real assetsIn a secondary market, existing securities are bought and sold. Transactions in these already existing securities do not provide additional funds to finance capital investmentIV. Problems (60 Points) (Please write your answer on the answer paper)1. Answer:100000=A FVIF(8%,10)=14.487A A=100000/14.487=69032. Answer:a. 24=1.5(1+g)/(0.12-g), g=0.054b. dividend yield=0.12-g=0.066, capital gains yield=0.0541. (10/ ) Many different methods to lead to a correct solution.PV of this mixed flows problem = 1,000(PVIF10%,1) + 4,000(PVIF10%,2) + 9,000(PVIF10%,3) + 5,000(PVIF10%,4) + 2,000(PVIF10%,5) = 15,633.62.5. (1) Determine the annual dividends.D0 = $3.24 (this has been paid already)D1 = D0(1+g1)1 = $3.24(1.16)1 =3.76D2 = D0(1+g1)2 = $3.24(1.16)2 =4.36D3 = D0(1+g1)3 = $3.24(1.16)3 =5.06D4 = D3(1+g2)1 = $5.06(1.08)1 =5.46P3 = 5.46 / (.15 - .08) = $78 [CG Model](2) Determine the PV of cash flows.PV(D1) = D1(PVIF15%, 1) = 3.76 (.870) = 3.27PV(D2) = D2(PVIF15%, 2) = 4.36 (.756) = 3.30PV(D3) = D3(PVIF15%, 3) = 5.06 (.658) = 3.33PV(P3) = P3(PVIF15%, 3) = 78 (.658) = 51.32(3) Calculate the intrinsic value by summing all the cash flow present values.V = 3.27 + 3.30 + 3.33 + 51.326. a) (5/) The beta of a portfolio is simply a weighted average of the betas of the individual securities that make up the portfolio.TICKER SYMBOL BETA PROPORTION WEIGHTED BETANBS 1.40 .2 .280YUWHO .80 .2 .160SLURP .60 .2 .120W ACHO 1.80 .2 .360BURP 1.05 .1 .105SHABOOM .90 .1 .0901.0 1.115The portfolio beta is 1.115.b) (5/ ) Expected portfolio return=.08 + (.14 - .08)(1.115)= .08 + .0669 = .1469 or 14.69%。

财务类英语试题及答案一、选择题（每题1分，共10分）1. Which of the following is a common financial statement?A. Balance SheetB. Income StatementC. Cash Flow StatementD. All of the above2. The term "equity" in finance refers to:A. Money owed to a company.B. Money invested in a company.C. Money earned by a company.D. Money spent by a company.3. What is the formula for calculating the return on investment (ROI)?A. ROI = (Net Income / Total Assets) * 100B. ROI = (Total Assets / Net Income) * 100C. ROI = (Net Profit / Cost of Investment) * 100D. ROI = (Cost of Investment / Net Profit) * 1004. The process of forecasting a company's future financial position is known as:A. BudgetingB. ForecastingC. PlanningD. Analysis5. Which of the following is not a type of financial risk?A. Credit riskB. Market riskC. Liquidity riskD. Fixed risk6. The term "leverage" in finance is used to describe:A. The use of borrowed money to increase potential returns.B. The process of selling a financial asset.C. The amount of money a company has in the bank.D. The ratio of a company's equity to its debt.7. What does "EBIT" stand for in financial analysis?A. Earnings Before Interest and TaxesB. Earnings Before Income and TaxesC. Earnings Before Interest and TotalD. Earnings Before Interest, Taxes, and Depreciation8. The "time value of money" concept implies that:A. Money received in the future is worth less than money received today.B. Money received in the past is worth more than money received today.C. Money has no value over time.D. The value of money is constant over time.9. Which of the following is a method of financial analysis?A. SWOT analysisB. PEST analysisC. Ratio analysisD. Porter's Five Forces analysis10. The "break-even point" in finance is the point at which:A. A company's revenue equals its expenses.B. A company's net income is zero.C. A company's assets equal its liabilities.D. A company's cash flow is positive.答案：1. D2. B3. C4. B5. D6. A7. A8. A9. C10. A二、填空题（每题1分，共5分）11. The __________ is a financial statement that shows a company's assets, liabilities, and equity at a particular point in time.Answer: Balance Sheet12. The __________ is the difference between revenue and expenses during a specific period.Answer: Net Income13. In finance, the term "capital" often refers to the__________ of the business.Answer: Owners' Equity14. If a company's current assets are greater than itscurrent liabilities, it is said to have a positive __________. Answer: Working Capital15. The __________ is a measure of how well a company can pay its current debts.Answer: Quick Ratio三、简答题（每题5分，共10分）16. What is the purpose of a financial statement analysis?Answer: The purpose of financial statement analysis is to assess the performance and financial health of a company. It helps investors, creditors, and other stakeholders to make informed decisions about the company's financial stability, profitability, and risk.17. Explain the difference between "operating activities" and "financing activities" in the context of a cash flow statement.Answer: Operating activities in a cash flow statement referto the cash transactions that are directly related to thecore business operations of the company, such as cashreceived from sales and cash paid for expenses. Financing activities, on the other hand, involve cash transactions related to the company's financing arrangements, such as issuing or repaying debt, issuing or buying back shares, and paying dividends.四、计算题（每题5分，共5分）18. If a company has a net profit of $100,000 and a cost of investment of $500,000, what is the ROI?Answer: ROI = (Net Profit / Cost of Investment) * 100ROI = (100,000 / 500,000) * 100ROI = 20%五、论述题（每题10分，共10分）19. Discuss the importance of financial planning in business management.Answer: Financial planning is a critical component of business management as it helps in setting financial goals, allocating resources efficiently, and forecasting。