Quiz 2 - Quiz Chpt 3 PDF

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Quiz Chpt 3...

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1/25/2020

Week 1 Quiz - Ch. 1 and Ch. 2: Cross-listed Course: FINC 5000 1P / FINC 5000 28 / FINC 5000 36 S1 2020

Week 1 Quiz - Ch. 1 and Ch. 2 Due Jan 28 at 10:59pm Points 20 Allowed Attempts Unlimited

Questions 10

Time Limit 60 Minutes

Instructions The quiz will be made up of 10 questions, which will vary between multiple choice and true/false. It is 60 minutes in length, and you are allowed to have as many attempts as you like. The quiz will retain your highest score. Good luck!

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Attempt History LATEST

Attempt

Time

Score

Attempt 1

22 minutes

18 out of 20

Score for this attempt: 18 out of 20 Submitted Jan 25 at 11:13am This attempt took 22 minutes.

Question 1

2 / 2 pts

Debt is a less risky than equity because a debtholder's claim has priority to an equity holder's claim.

Correct!

True

https://worldclassroom.webster.edu/courses/1366298/quizzes/1928859

1/5

1/25/2020

Week 1 Quiz - Ch. 1 and Ch. 2: Cross-listed Course: FINC 5000 1P / FINC 5000 28 / FINC 5000 36 S1 2020

Question 2

2 / 2 pts

You recently sold 200 shares of Apple stock to your brother. The transfer was made through a broker, and the trade occurred on the NYSE. This is an example of:

Correct!

A secondary market transaction.

Question 3

0 / 2 pts

Other things held constant, which of the following actions would increase the amount of cash on a company's balance sheet?

You Answered

orrect Answer

The company repurchases common stock.

The company issues new common stock.

Question 4

https://worldclassroom.webster.edu/courses/1366298/quizzes/1928859

2 / 2 pts

2/5

1/25/2020

Week 1 Quiz - Ch. 1 and Ch. 2: Cross-listed Course: FINC 5000 1P / FINC 5000 28 / FINC 5000 36 S1 2020

Consider the balance sheet of Wilkes Industries as shown below. Because Wilkes has $800,000 of retained earnings, the company would be able to pay cash to buy an asset with a cost of $200,000.

Cash

$

$ 100,000

Inventory

200,000Accruals

100,000

Accounts receivable

250,000Total CL

$ 200,000

Total CA

$ 500,000Debt

200,000

Net fixed assets

$ 900,000Common stock

200,000

_________Retained earnings

800,000

Total assets

Correct!

50,000Accounts payable

$1,400,000Total L & E

$1,400,000

False

Question 5

2 / 2 pts

Two disadvantages of a proprietorship are (1) the relative difficulty of raising new capital and (2) the owner's unlimited personal liability for the business' debts.

Correct!

True

Question 6

https://worldclassroom.webster.edu/courses/1366298/quizzes/1928859

2 / 2 pts

3/5

1/25/2020

Week 1 Quiz - Ch. 1 and Ch. 2: Cross-listed Course: FINC 5000 1P / FINC 5000 28 / FINC 5000 36 S1 2020

The annual report contains four basic financial statements: the income statement, balance sheet, statement of cash flows, and statement of stockholders' equity.

Correct!

True

Question 7

2 / 2 pts

Which of the following would be most likely to lead to higher interest rates on all debt securities in the economy?

Correct!

Corporations step up their expansion plans and thus increase their demand for capital.

Question 8

2 / 2 pts

Money markets are markets for

https://worldclassroom.webster.edu/courses/1366298/quizzes/1928859

4/5

1/25/2020

Correct!

Week 1 Quiz - Ch. 1 and Ch. 2: Cross-listed Course: FINC 5000 1P / FINC 5000 28 / FINC 5000 36 S1 2020

Short-term debt securities.

2 / 2 pts

Question 9

The primary reason the annual report is important in finance is that it is used by investors when they form expectations about the firm's future earnings and dividends, and the riskiness of those cash flows.

Correct!

True

2 / 2 pts

Question 10 On the balance sheet, total assets must always equal total liabilities and equity.

Correct!

True

Quiz Score: 18 out of 20

https://worldclassroom.webster.edu/courses/1366298/quizzes/1928859

5/5...