mba/503 final exam questions
MBA/503 Final Exam Name:__________________
1. An item which may be converted to cash within one year or one operating cycle of the firm is classified as a A) current liability. B) long-term asset. (correct) C) current asset. D) long-term liability.
2. Which account represents the cumulative earnings of the firm since its formation, minus dividends paid? A) Paid-in capital B) Common stock C) Retained earnings (correct) D) Accumulated depreciation
3. A firm's long term assets = $75,000, total assets = $200,000, inventory = $25,000 and current liabilities = $50,000. A) current ratio = 0.5; quick ratio = 1.5 B) current ratio = 1.0; quick ratio = 2.0 C) current ratio = 1.5; quick ratio = 2.0 (correct) D) current ratio = 2.5; quick ratio = 2.0
4. XYZ's receivables turnover is 10x. The accounts receivable at year-end are $600,000. The average collection period is 90 days (3 months). What was the sales figure for the year? A) $60,000 B) $6,000,000 C) $24,000,000 D) none of the above (correct)
5. A firm has total assets of $2,000,000. It has $900,000 in long-term debt. The stockholders equity is $900,000. What is the total debt to asset ratio? A) 45% (correct) B) 40% C) 55% D) none of the above
6. At the break-even point, a firm's profits are A) greater than zero. B) less than zero. C) equal to zero. (correct) D) Not enough information to tell
7. If a firm has a break-even point of 20,000 units and the contribution margin on the firm's single product is $3.00 per unit and fixed costs are $60,000, what will the firm's net income be at sales of 30,000 units? A) $90,000 (correct) B) $30,000 C) $15,000 D) $45,000
8. A firm has forecasted sales of $3,000 in April, $4,500 in May and $6,500 in June. All sales are on credit. 30% is collected the month of sale and the
1. An item which may be converted to cash within one year or one operating cycle of the firm is classified as a A) current liability. B) long-term asset. (correct) C) current asset. D) long-term liability.
2. Which account represents the cumulative earnings of the firm since its formation, minus dividends paid? A) Paid-in capital B) Common stock C) Retained earnings (correct) D) Accumulated depreciation
3. A firm's long term assets = $75,000, total assets = $200,000, inventory = $25,000 and current liabilities = $50,000. A) current ratio = 0.5; quick ratio = 1.5 B) current ratio = 1.0; quick ratio = 2.0 C) current ratio = 1.5; quick ratio = 2.0 (correct) D) current ratio = 2.5; quick ratio = 2.0
4. XYZ's receivables turnover is 10x. The accounts receivable at year-end are $600,000. The average collection period is 90 days (3 months). What was the sales figure for the year? A) $60,000 B) $6,000,000 C) $24,000,000 D) none of the above (correct)
5. A firm has total assets of $2,000,000. It has $900,000 in long-term debt. The stockholders equity is $900,000. What is the total debt to asset ratio? A) 45% (correct) B) 40% C) 55% D) none of the above
6. At the break-even point, a firm's profits are A) greater than zero. B) less than zero. C) equal to zero. (correct) D) Not enough information to tell
7. If a firm has a break-even point of 20,000 units and the contribution margin on the firm's single product is $3.00 per unit and fixed costs are $60,000, what will the firm's net income be at sales of 30,000 units? A) $90,000 (correct) B) $30,000 C) $15,000 D) $45,000
8. A firm has forecasted sales of $3,000 in April, $4,500 in May and $6,500 in June. All sales are on credit. 30% is collected the month of sale and the