Yes No c. No No d. No Yes 2. Under the temporal method, monetary assets and liabilities are translated by using the exchange rate existing at the: a. beginning of the current year. b. date the transaction occurred. c. balance sheet date. d. None of these.
Which yield is used for Treasury bill quotes? a. The bond equivalent yield is the rate used to calculate the present value of and investment, and a discount yield is the return on securities results from the purchase of the security at a discount from its face value and the receipt of face value at maturity. b. They use bond equivalent yields.
b) create more cash ﬂow than it uses. c) reduce its investment in ﬁxed assets since ﬁxed assets require the use of cash. d) avoid payments to the government so dividends can be increased. e) avoid the issuance of debt securities Find the week 1 connect problems answers here FIN 571 Week 1 Connect Problems 5. The primary goal of ﬁnancial management is to: a) maximize current dividends per share of the existing stock.
because the Emission and the cost of emission allowances have indetermination lives and inherent in a continuing business , the emission allowance is recognized as expense when incurred. In conclusion: If the emission allowance is recognized as expense when incurred , expense is noncash item, it is reconciled net income in the operating activities so that the
a. cash b. cash and money market funds c. cash and cash equivalents d. cash and U.S. treasury bonds ANS: D 3. The statement of cash flows reports a. cash flows from operating activities b. total assets c. total changes in stockholders' equity d. changes in retained earnings ANS: A DIF: Easy 4. On the statement of cash flows, the cash flows from operating activities section would include? a. receipts from the issuance of capital stock b. receipts from the sale of investments c. payments for the acquisition of investments d. cash receipts from sales activities ANS: D DIF: Easy 5. Preferred stock issued in exchange for land would be reported in the statement of cash flows in a. the cash flows from financing activities section b. the cash flows from investing activities section c. a separate schedule d. the cash flows from operating activities section ANS: C DIF: Easy 6.
The practice of business valuation The first method of business valuation, discounted cash flow (the "DCF"), is based on the idea that the economic value of the asset is equal to the amount of future cash flow Company updated to reflect its risk. The discount rate used is the weighted average cost of capital. Is calculated as follows: • cash flows discounted at the explicit forecast horizon (visibility of the company); • the terminal value from estimating a growth rate to infinity; • the value of equity is the difference between the asset value and the resulting economic value of the bank debt and net financial and possibly other elements. The second evaluation method, the method of multiple analog approach is compared with other companies in the same sector. In this approach, the economic value of the assets of a company is the result of a multiple of its earnings: operating profit multiple or multiple of EBITDA.
Prior period adjustments are added to (or deducted from) the beginning retained earnings balance. Which of the following would be reported as other comprehensive income? An unrealized holding gain on available-for-sale securities is reported as other comprehensive income. The correction of an error is reported, net of tax, as an adjustment to the opening balance of retained earnings. Losses on impairment and gains from sales are reported as part of net income.