finquiz-2 fincop. the primary function of the income statement is to: a) show the company's...

FINQUIZ-2FinCoP

The primary function of the Income Statement is to:

 A) Show the company's value as of a given point in time B) Determine if the company will have enough cash to operate properly C) Determine taxes owed or not owed D) Compare the company's assets against the company's liabilities E) Measure the company's financial performance over a period of time

Q1

Financial Statements are reports on the financial performance of organizations. They provide data on: 

A) Projections for the upcoming fiscal year B) Where money comes from, what money is spent on and how much money is available for use  C) Comparative company data to companies in similar industries D) All of the above E) None of the above

Q2

The primary function of the Balance Sheet is to:

 A) Measure the company's performance over a period of time B) Make sure that the company's assets and the company's liabilities "balance" C) Determine taxes owed or not owed D) Show the company's value as of a given point in time E) Determine if the company will have enough cash to operate properly

Q3

The Balance Sheet equation is:

 A) Assets divided by Equity = Liabilities B) Assets plus Liabilities = Equity C) Assets = Liabilities plus Equity D) Equity = Profit minus Taxes E) Liabilities = Assets plus Equity

Q4

Which is correct about Preferred Stock: 

 A) It is reserved only for preferred customers or investors B) It is always worth more than common stock C) It always costs more than common stock D) It has priority over common stock in the event of the dissolution of the company E) It cannot be owned by full time employees of the company

Q5

Which one of the below is the MAJOR responsibility of a businessperson: 

A) Making as little income as possible that is taxable in order to minimize the government's cut B) Making as much money as possible for the employees to share in salary, bonus and benefits C) Making sure the company is legally compliant with all reporting and other regulatory requirements D) Making as much money as possible to distribute in dividends to stockholders E) Making the value of the company increase by generating increasing revenues and profits

Q6

• What is a Buy Back?

A)Buyback is a stock related term that refers to the buying back of stocks or bonds by the issuing company.B)Initial Public Offering.C)Issuing new company shares.

Q7

• What is credit?

A)Funds available for borrowing.B)Financial statement.C)The sum of your assets.

Q8

• What does ARM stand for?

A)Adjustable Reverse MortgageB)Amortization Rate MortgageC)Adjustable Rate Mortgage

Q9

• What does Book Value mean?

A)Discounted cash flow.B)The value of an asset based on its original purchase cost, minus depreciation, amortization and other similar devaluing costs. C)The current value of an asset.

Q10

Calculate the straight line depreciation per year on a project with a depreciable base of $100,000 if the expected life is 3 years. Use the half-year convention.

Q11

• In the year 2005 the company issues 9%Debenture Rs100 each. After 5 years, the company decides to convert 9%debenture into 11%debenture….What will be the implication in the balance sheet?

Q12

Rank in the order of preference, the company clears its dues when it goes into liquidation?a) Equity shareholdersb) Debenture holdersc) Preference shareholders

Q13

Cash flow statement can be divided into 3 different activities?Name them in any order? Just give the name.

Q14

• Difference between balance sheet and profit and loss account.(only 2 differences). We are not looking at the items shown in it.

Q15

• Can we transfer the shares in a partnership form of business? If Yes , How?

Q16

• Give me an example of Quasi-Debt

Q17

• What is DOL, DFL & DCL?

Q18

• If I record goods purchased in credit from Mr. Ghanshyam, what concept of Accounting am I following?

Q19

• Can Preferred Stock holders vote? If yes, when can they do so?

Q20