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MTLE Business: Finance, Accounting & Information Analysis Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following is the best explanation of short-term financing?

Question 2 2. Which of the following assets offers the MOST liquidity?

Question 3 3. Jeff receives a paycheck of $2,100 twice per month. His monthly expenses include: $1,500 on rent, $400 on a car payment, $120 for his cellphone, $450 for utilities, $250 for groceries, and $200 for entertainment. After calculating Jeff's cash flow, how much does he have left over for the month?

Question 4 4. What are events that occurred after the date on the balance sheet but before the financial statements have been issued called?

Question 5 5. What is the difference between a Statement of Cash Flows and Income Statement?

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Question 6 6. What are the standards that all financial reports are created by?

Question 7 7. Financial planning can best be defined as a process for making sure that _____.

Question 8 8. What would a lender look for when considering an individual's application for a home mortgage loan?

Question 9 9. What is the statement of cash flows?

Question 10 10. Which company, listed on the New York Stock Exchange would definitely be in breach of the Going Concern Principle?

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Question 11 11. What does the term 'accounting' mean?

Question 12 12. Which of the following financial reports tells how much money that was made was reinvested in the company?

Question 13 13. Which of the following financial reports tells whether a company made or lost money in a given time period?

Question 14 14. Why is financial feasibility an important step in financial planning?

Question 15 15. Which of the following is an example of how publicly-traded companies can apply the principle of conservatism with their financial statements?

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Question 16 16. Michael, the majority shareholder of a company, decided to produce the company's balance sheet whose cash balance included the cash in his own bank account. Would Michael be allowed to do this by GAAP?

Question 17 17. What is the formula for the basic accounting equation?

Question 18 18. Tom is saving for a down payment on a new automobile. If he wants his savings account (which is earning a 5% interest rate) to be worth $5,000 in 3 years, how much money will he need to invest today?

Question 19 19. Which of the following is NOT a feature of a stock offered to raise equity capital?

Question 20 20. What do the notes to the financial statements do?

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Question 21 21. Why is a Balance Sheet an important financial statement?

Question 22 22. What is a liability that has not yet occurred but the conditions are favorable that it will occur called?

Question 23 23. Barry takes out a 12 month loan from a bank to buy some new office equipment. The bank requires that Barry put up the equipment he is purchasing as collateral. What type of credit arrangement is involved?

Question 24 24. Tom works in accounting, and he has to prepare a budget that will take into account all of the activities of the company. There will be a strong investment from the acquisitions department that will impact their budget but is worth less than 2% of the company's value. Should Tom wait for a new report from the acquisition's department?

Question 25 25. What is the balance sheet equation?

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Question 26 26. Which of the following is the equation used for the basic income statement?

Question 27 27. How can a corporation raise equity capital?

Question 28 28. What does ALOE stand for?

Question 29 29. Why are government grants considered the cheapest form of long-term financing?

Question 30 30. Which type of credit involves the bank allowing a borrower to borrow money on an as needed basis up to a preset maximum?

MTLE Business: Finance, Accounting & Information Analysis Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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