公司理财选1.docVIP

d 15. Agency costs refer to: a. the total dividends paid to stockholders over the lifetime of a firm. b. the costs that result from default and bankruptcy of a firm. c. corporate income subject to double taxation. d. the costs of any conflicts of interest between stockholders and management. e. the total interest paid to creditors over the lifetime of the firm. d 5. A(n) ____ asset is one which can be quickly converted into cash without significant loss in value. a. current b. fixed c. intangible d. liquid e. long-term c 21. Which one of the following accounts is generally the most liquid? a. inventory building accounts receivable equipment patent BOOK VALUE b 25. Book value: a. is equivalent to market value for firms with fixed assets. is based on historical cost. generally tends to exceed market value when fixed assets are included. is more of a financial than an accounting valuation. is adjusted to market value whenever the market value exceeds the stated book value. a 26. When making financial decisions related to assets, you should: always consider market values. place more emphasis on book values than on market values. rely primarily on the value of assets as shown on the balance sheet. place primary emphasis on historical costs. only consider market values if they are less than book values. c 36. The cash flow to creditors includes the cash: received by the firm when payments are paid to suppliers. outflow of the firm when new debt is acquired. c. outflow when interest is paid on outstanding debt. d. inflow when accounts payable decreases. e. received when long-term debt is paid off. b 38. Which equality is the basis for the balance sheet? a. Fixed Assets = Stockholders Equity + Current Assets b. Assets = Liabilities + Stockholders Equity c. Assets = Current Long-Term Debt + Retained Earnings d. Fixed Assets = Liabilities + Stockholders Equity e. None of the above. b 45. Which of the following is not included in the computation of oper