10 points QUESTION 3 Revenue minus expenses equals profitability….
QuestionAnswered step-by-step10 points QUESTION 3 Revenue minus expenses equals profitability….10 points QUESTION 3 Revenue minus expenses equals profitability. True False 10 points QUESTION 4 Assets minus liabilities equals net worth. True False 10 points QUESTION 5 Assets minus liabilities equals net income. True False 10 points QUESTION 6 Revenue and expenses are reported on income statements. True False 10 points QUESTION 7 Revenue and expenses are reported on balance sheets. True False 10 points QUESTION 8 Assets and liabilities are reprted on balance sheets. True False 10 points QUESTION 9 Cash flow from operating activities would include changes in inventory. True False 10 points QUESTION 10 Return on assets equals profit margin times asset turnover. True False 10 points QUESTION 11 Current assets plus current liabilities equals working capital. True False 10 points QUESTION 12 Pro forma income statements are projected income statements. True False 10 points QUESTION 13 Contribution margin equals price minus fixed costs per unit. True False 10 points QUESTION 14 Break-even equals fixed costs plus contribution margin. True False 10 points QUESTION 15 Degree of financial leverage equals EBIT divided by EPS. True False 10 points QUESTION 16 Surplus cash should be invested in marketable securities. True False 10 points QUESTION 17 Accounts receivable equals average daily credit sales divided by average collection period. True False 10 points QUESTION 18 Trade credit is an important source of working capital. True False 10 points QUESTION 19 IRR and NPV are TMV calculations. True False 10 points QUESTION 20 IRR and NPV are CVP calculations. True False 10 points QUESTION 21 TVM calculations are capital budgeting calculations. True False 10 points QUESTION 22 D1 divided by (P0 – F) plus g equals the present value of an annuity. True False 10 points QUESTION 23 D1 divided by (P0 – F) plus g = Kn True False 10 points QUESTION 24 Equity financing involves the sale of stock. True False 10 points QUESTION 25 Equity financing involves the sale of bonds. True False 10 points QUESTION 26 Debt financing involves the sale of bonds. True False 10 points QUESTION 27 Rj + ß (Km – Rf) = Kmc True False 10 points QUESTION 28 CAPM calucations determine the marginal cost of capital. True False 10 points QUESTION 29 The NASDAQ is a money market. True False 10 points QUESTION 30 Corporations pay dividends to stockholders as a return on investment. True False 10 points QUESTION 31 Investment bankers underwrite IPOs True False 10 points QUESTION 32 “Economics has little to do with finance” is a false statement. True False 10 points QUESTION 33 “Accounting has a lot to do finance” is a false statement. True False 10 points QUESTION 34 The SEC regulates the NYSE. True False 10 points QUESTION 35 Financial securites are publically traded in secondary markets. True False 10 points QUESTION 36 “GDP, interest rates, and inflation have little to do with financial decision making” is a true statement. True False 10 points QUESTION 37 Corporations report retained earnings as cash on their balance sheets. True False 10 points QUESTION 38 Corporations report retained earnings as revenue on their income statements. True False 10 points QUESTION 39 Corporations report retained earnings as stockholders’ equity on their balance sheets. True False 10 points QUESTION 40 “The price of a corporation’s stock is equal to its PE multiplied by its EPS” is a true statement. True False AccountingBusinessFinancial AccountingBU 265Share Question
