Accounting for Managers

281. Life of security simply refer to

1. Yield
2. Liquidity
3. Maturity
4. Safety

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282. Ratio of present value of project’s future net cash flows to projects initial cash flow is

1. Profitability index
2. Internal rate of return
3. Net present value
4. Average rate of return

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283. The ______________ is responsible for accounting, maintaining and auditing of the accounts.

1. Shareholders
2. Treasurer
3. Controller
4. Board of Directors

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284. The financial ratio measured as EBIT/Interest expense is known as the firm's

1. Profit margin
2. Return on assets
3. Interest coverage
4. Earnings before interest and taxes (EBIT)

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285. Fixed-based method is the subcategory of which of the following analysis.

1. Ratio analysis
2. Vertical analysis
3. Horizontal analysis
4. None of the above

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286. Which of the following best represents the total inventory costs, T, where S is total usage of the inventory item for the period, Q is the q

1. T = C (Q/2) + O (S/Q)
2. T = SQRT [2 (O) (S) / C]
3. T = SQRT [2 (C) (S) / O
4. T = C (S/Q) + O (Q/2)

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287. Which of the following is NOT the present value of the bond?

1. Intrinsic value
2. Market price
3. Fair price
4. Theoretical price

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288. ______________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.

1. Financial management
2. Profit maximization
3. Agency theory
4. Social responsibility

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289. Oliver Incorporated has a current ratio equal to 1.6 and a quick ratio equal to 1.2. The company has $2 million in sales and its current liabilities are $1 million. What is the company’s inventory turnover ratio?

1. 5.0
2. 5.2
3. 5.5
4. 6.0

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290. Share and bonds floats in ______________

1. Money market
2. Capital market
3. Commercial bank
4. Equity market

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