公司金融英文试题分析.docx

Multiple Choice (3 points×20 =60 points):1.Which of the following is not considered one of the basic questions of corporate finance? A)What long-lived assets should the firm invest?B)How much inventory should the firm hold?C)How can the firm raise cash for required capital expenditures?D)How should the short-term operating cash flows be managed?E)All of the above.Answer: B Difficulty: Medium Page: 4 2.Generally accepted accounting principles may recognize and record a sale A)before a customer pays assuming they will pay soon. B)only after the company receives payment in full. C)when the company receives at least 50% of the total revenue from the customer. D)All of the above. E)None of the above. Answer: A Difficulty: Medium Page: 7 3. Working capital management includes decisions concerning which of the following?I. accounts payableII. accounts receivableIII. long-term debtIV. inventoryA. I and II onlyB. I and III onlyC. II and IV onlyD. I, II, and IV onlyE. I, III, and IV onlyAnswer:D4.Fixed assets can be either tangible or intangible. Intangible assets A)are property, plant and equipment. B)can be converted to cash in the normal course of business. C)may be very valuable, although they have no physical presence, such as trademarks or patents. D)are highly liquid. E)None of the above. Answer: C Difficulty: Medium Page: 22 5.In 2004, TimeNow Corporation had fixed assets of $1,345, current assets of $260, current liabilities of $180 and shareholders equity of $775. What was the net working capital for TimeNow in 2004? A)$ 80 B)$180 C)$260 D)$390 E)None of the above. Answer: A Difficulty: Medium Page: 26 Rationale: $260 - $180 = $806.What is the effect on net working capital if the corporation decides to increase its investment in inventory and pay for it with cash? A)Increase in net working capital. B)Decrease in net working capital. C)Depends on the amount of the investment. D)No change in net working capital. E)None of the above. Answer: D