公司金融英文试题.doc

Corporate Finance Midterm 1, Spring 2013 Name: ID: Multiple Choices (3 points×20 = 60 points): 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1. Which of the following is not considered one of the basic questions of corporate finance? A) What long-lived assets should the firm invest? B) How much inventory should the firm hold? C) How can the firm raise cash for required capital expenditures? D) How should the short-term operating cash flows be managed? E) All of the above. Answer: B Difficulty: Medium Page: 4 2. Generally accepted accounting principles may recognize and record a sale A) before a customer pays assuming they will pay soon. B) only after the company receives payment in full. C) when the company receives at least 50% of the total revenue from the customer. D) All of the above. E) None of the above. Answer: A Difficulty: Medium Page: 7 3. The _____ tax rate is equal to total taxes divided by total taxable income. A. deductible B. residual C. total D. average E. marginal D 4.?Which one of the following will increase the value of a firms net working capital??A.?using cash to pay a supplierB.?depreciating an assetC.?collecting an accounts receivableD.?purchasing inventory on creditE.?selling inventory at a profit E 5. The higher the degree of financial leverage employed by a firm, the: A. higher the probability that the firm will encounter financial distress. B. lower the amount of debt incurred. C. less debt a firm has per dollar of total assets. D. higher the number of outstanding shares of stock. E. lower the balance in accounts payable. A 6. Depreciation: A. reduces both taxes and net income. B. increases the net fixed assets as shown on the balance sheet. C. reduces both the net fixed assets and the costs of a firm. D. is a noncash expense which increases the net income. E. decreases net fixed assets, net income, and operating cash flows. A 7. Which one of the following must be