TEST1

Capital budgeting is

• the process of planning and managing a firm’s short-term investments => fixed assets

• the process of planning and managing a firm’s long-term investments => fixed assets

• the process of planning and managing a firm’s long-term investments => variable assets

• the process of planning and managing a firm’s short-term investments => variable assets

Capital markets are

• markets in which short-term financial securities like stocks and bonds are bought and sold (i.e. traded).

• markets in which long-term financial securities like t-bills and commercial papers are bought and sold (i.e. traded).

• markets in which short-term financial securities like t-bills and commercial papers are bought and sold (i.e. traded).

• markets in which long-term financial securities like stocks and bonds are bought and sold (i.e. traded).

A market for newly created securities is.

• Secondary market

• Capital market

• Primary market

• Money market

How long does it take to double $5,000 at a compound rate of 15% per year (approx.)?

• 4.8 years

• 3.2 years

• 5.4 years

• 4.6 years

Payments or receipts occur at the beginning of each period in

• Ordinary annuity

• Annuity due

• Simple annuity

• Annuity rate

Methods of Financial Statement Analysis do not include

• Horizontal Analysis

• Bottomline Analysis

• Vertical Analysis

• Trend Percentages

Financial statements that show only percentages and no absolute amounts.

• Horizontal Analysis

• Common-Size Statements

• Trend Percentages

• Ratio Analysis

Not a type of financial statements

• Income statement

• Balance sheet

• Disclosure statement

• Cash flow statement

Purpose of financial statement does not include evaluation management performance in

• Profitability

• Efficiency

• Risk

• Sustainability