公司理财期末复习材料.doc

CURRENT ASSETS c 1 A current asset is: a. an item currently owned by the firm. b. an item that the firm expects to own within the next year. c. an item currently owned by the firm that will convert to cash within the next 12 months. d. the amount of cash on hand the firm currently shows on its balance sheet. e. the market value of all items currently owned by the firm. LONG-TERM DEBT b 2 The long-term debts of a firm are liabilities: a. that come due within the next 12 months. b. that do not come due for at least 12 months. c. owed to the firm’s suppliers. d. owed to the firm’s shareholders. e. the firm expects to incur within the next 12 months. NET WORKING CAPITAL e 3 Net working capital is defined as: a. total liabilities minus shareholders’ equity. b. current liabilities minus shareholders’ equity. c. fixed assets minus long-term liabilities. d. total assets minus total liabilities. e. current assets minus current liabilities. OPERATING CASH FLOW a 4 _____ refers to the cash flow that results from the firm’s ongoing, normal business activities. a. Operating cash flow b. Capital spending c. Net working capital d. Cash flow from assets e. Cash flow to creditors EARNINGS PER SHARE a 5. The earnings per share will: a. increase as net income increases. increase as the number of shares outstanding increase. decrease as the total revenue of the firm increases. increase as the tax rate increases. decrease as the costs decrease. QUICK RATIO d 6 The quick ratio is measured as: a. current assets divided by current liabilities. b. cash on hand plus current liabilities, divided by current assets. c. current liabilities divided by current assets, plus inventory. d. current assets minus inventory, divided by current liabilities. e. current assets minus inventory minus current liabilities. DEBT-EQUITY RATIO c 7 The debt-equity ratio is measured as total: a. equity minus total debt. b. equity divided by total debt. c. debt divided by total equity. d