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The market price of a bond moves inversely with the market interest rate.

Question 26 options:

	a) True
	b) False

Question 27 (1 point)

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An installment note is a debt that requires the borrower to make equal periodic payment to the lender for the term of the note.

Question 27 options:

	a) True
	b) False

Question 28 (2 points)

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When stock is sold the difference between market and par value is credited to:

Question 28 options:

a)	Cash
b)	Accumulated depreciation
c)	Additional paid-in capital
d)	Common stock

Question 29 (1 point)

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Which of the following is not an advantage of issuing bonds instead of stock?

Question 29 options:

a)	Tax savings from interest deduction.
b)	Income to shareholders may increase
c)	Earnings per share may be lower

Question 30 (1 point)

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If you borrow money from a credit union or car dealership to purchase a car, this type of loan is a

Question 30 options:

a)	Default loan
b)	Corporate Bond
c)	Mortgage
d)	Installment loan

Question 31 (1 point)

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Temporary investments such as trading securities are:

Question 31 options:

a)	Recorded at cost but reported at lower of cost or fair market value (FMV)
b)	Recorded at cost and reported at cost
c)	Recorded at fair market value (FMV) and reported at FMV.
d)	Recorded at cost but reported at fair market value (FMV)

Question 32 (1 point)

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Interest revenue on bonds is reported

Question 32 options:

a)	as an addition to the Investment in Bonds account
b)	as part of Comprehensive Income but not part of Net Income.
c)	as part of other income
d)	as part of operating income

Question 33 (1 point)

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The cash flow statement is one of the four financial statements in a company's annual report.

Question 33 options:

	a) True
	b) False

Question 34 (1 point)

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The cash flow statement is divided into three sections and the "financing" section reports changes in the equity and long-term debt sections of the balance sheet..

Question 34 options:

	a) True
	b) False

Question 35 (1 point)

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In lecture and in the problems we commonly used the "direct" method of preparing the cash flow statement.

Question 35 options:

	a) True
	b) False

Question 36 (1 point)

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Cash paid to purchase long-term investments would be reported in the statement of cash flows in this section:

Question 36 options:

a)	Financing activities
b)	Just disclosed at the bottom of the statement
c)	Investing activities
d)	Operating activities

Question 37 (1 point)

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On the statement of cash flows, the cash flows from operating activities section would include:

Question 37 options:

a)	receipts from the sale of investments
b)	Receipts from the issuance of capital stock
c)	cash receipts from sales activities
d)	payments for the acquisition of investments

Question 38 (1 point)

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The relationship of $325,000 to $125,000 expressed as a ratio, is:

Question 38 options:

a)	2.6 to 1
b)	2.5 to 1
c)	.45 to 1
d)	2 to 1

Question 39 (1 point)

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The percentage analysis of increases and decreases in individual items in comparative financial statements is called:

Question 39 options:

a)	profitability analysis
b)	solvency analysis
c)	horizontal analysis
d)	vertical analysis

Question 40 (1 point)

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Which of the following below generally is the most useful in analyzing companies of different sizes?

Question 40 options:

a)	audit report
b)	Comparative statements
c)	price-level accounting
d)	common-sized financial statements

Question 41 (1 point)

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Free cash flow is used in the evaluation of the acquisition of another company.

Question 41 options:

	a) True
	b) False

Question 42 (1 point)

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The advantage of owning preferred stock relates to a preference on dividends over common stock.

Question 42 options:

	a) True
	b) False

Question 43 (1 point)

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For the most part GAAP rules requires the "cost" method of accounting for assets.

Question 43 options:

	a) True
	b) False

Question 44 (1 point)

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The rules of the IASB do not require fair value accounting in lieu of the cost method.

Question 44 options:

	a) True
	b) False

Question 45 (1 point)

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Financial analysis is the process of analyzing a company's financial statements through ratios that measure financial strength and performance.

Question 45 options:

	a) True
	b) False

Question 46 (1 point)

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Revenue per employee may be used to measure partnership efficiency.

Question 46 options:

	a) True
	b) False

Question 47 (1 point)

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The current and quick ratios are financial ratios that measure the performance of the equity of a company.

Question 47 options:

	a) True
	b) False

Question 48 (1 point)

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The Wiley book breaks the financial ratios into three types.

Question 48 options:

	a) True
	b) False

Question 49 (7 points)

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Select the methods used to account for uncollectible receivables. Please choose more than one.

Question 49 options:

a)	equity method
b)	interest method
c)	cost method
d)	allowance method
e)	depletion method
f)	direct write-off method

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