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  • Jay Jayel

  • 問題数 44 • 2/8/2025

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    問題一覧

  • 1

    When does capitalization of leased equipment occur?

    When the leased asset is classified as a capital leased

  • 2

    Which of the following is included in capitalization?

    Share capital

  • 3

    Which of the following is a cause of overcapitalization?

    Over-estimation of earnings

  • 4

    Inadequate provision for depreciation can contribute to overcapitalization by,

    Leading to high replacement costs for assets

  • 5

    What distinguishes capitalization from capital structure?

    Capital structure focuses on the qualitative aspect finance

  • 6

    What is the primary purpose of accumulated depreciation on the balance sheet?

    To show the total depreciation expense accumulat over the asset's useful life

  • 7

    Overcapitalization occurs when earnings are not enough to cover the cost of capital, such as interest payments to bondholders or dividend payments to shareholders.

    True

  • 8

    Balance Sheet must have balance between assets and liabilities of a company.

    True

  • 9

    Short-term debt is not a part of the Capital Structure.

    False

  • 10

    Which is not a category of Finance?

    Group

  • 11

    Which is NOT a type of Financial Management?

    Discounting Period

  • 12

    Undercapitalization occurs when there's a need for outside capital because earnings were overestimated.

    True

  • 13

    Balance Sheet must have balance between assets and liabilities of a company

    True

  • 14

    Working Capital is the difference between a company's Current Assets (cash, accounts receivable/customers

    True

  • 15

    Who is not a major player in the Financial Environment?

    Shareholders

  • 16

    Which of the following is NOT a component of Working Capital?

    Cash Flow Statement

  • 17

    If the Reinvestment Rate of Return is greater than the Internal Rate of Return, the Modified Internal Rate of Return will be lower than the Internal Rate of Return.

    False

  • 18

    Positive Working Capital indicates that a company can fund its current operations and invest in future activities and growth.

    True

  • 19

    ________ Represents the amount of time required for the cash flows generated by the investment to repay the cost of the original investment

    Payback Period

  • 20

    The Internal Rate of Return is the rate of return from the capital investment.

    True

  • 21

    Working Capital Management of an organization refers to managing bookkeeping methodology

    True

  • 22

    Capital Investments are short-term investments

    True

  • 23

    Debt Financing comes as _______.

    bond issues

  • 24

    _______ is the planning procedure used to decide if a company's fixed assets such as new plant, new machinery; new research projects are worthy of allocating funds through the organization's Capitalization Structure(single

    Capital Budgeting

  • 25

    A good financial report depends on how various types of Financial Management decisions are undertaken

    True

  • 26

    A Financial Projection is what companies expect to achieve in a certain timeline, based on non hypothetical situations using the facts and data available

    False

  • 27

    Income Statement also known as the profit and loss (P&L) statement

    True

  • 28

    Small business is defined as a privately owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a corporation or regular-sized business.

    True

  • 29

    Asset Leasing is the most popular method of financing an asset, just ahead of using lines of credit or secured loans.

    True

  • 30

    A Financial Projection is what companies expect to achieve in a certain timeline, based on non hypothetical situations using the facts and data available

    False

  • 31

    Expansion Financing is a type of business loan specifically catered to companies in the expansion stage of their business

    True

  • 32

    _______ helps businesses take advantage of discounts for early payments and provides insight so small business can negotiate with suppliers for better payment terms to keep more cash on hand longer

    Cash Flow Management

  • 33

    small businesses tend to have more human resources and less up-front capital to dedicate to quality initiatives.

    False

  • 34

    Business owners are the primary source of capital and energy

    True

  • 35

    Apple Inc. is a prime example of a company that has thrived through product innovation. The tech giant has consistently introduced groundbreaking products, from the iPod to the iPhone and the iPad, that have revolutionized the technology industry and driven its growth. According to a report by Gartner, Apple sold over 217 million iPhones worldwide in 2018, up from 216 million in 2017. This growth underscores the power of product development as a growth strategy. "What are the first step to possible growth strategies for companies?"

    Market penetration

  • 36

    The Net Present Value (NPV) method involves discounting a stream of future cash flows back to present value.

    False

  • 37

    Balance Sheet must have balance between assets and liabilities of a company....

    True

  • 38

    Working Capital is the difference between a company's Current Assets (cash, accounts receivable/customers' unpaid bills, and inventories of raw materials and finished goods—and its current liabilities, such as accounts payable and debts.

    True

  • 39

    The NPV of an investment is the sum of all future cash flows over the investment's lifetime, discounted to the present value.

    True

  • 40

    Financial Statement Analysis is the ______ of analyzing a company's Financial Statements for decision-making purposes

    process

  • 41

    The Financial Statements of a company record important financial data on every aspect of a business's activities

    True

  • 42

    _______ must follow GAAP, which requires accrual accounting

    Public companies

  • 43

    ______ Looks at the vertical effects line items have on other parts of the business and the business's proportions.

    Horizontal analysis

  • 44

    Financial Statement Analysis evaluates a company's performance or value through a company's _______.

    Above all