16.Which type of current asset financing policy is riskiest?

a. compromise financing policy,

b. flexible financing policy,

c. restrictivefinancingpolicy,

d. maturity matching financing policy.

17.If the economy is in a decline, which type of current asset financing should be used?

a. compromise financing policy,

b. flexible financing policy,

c. restrictivefinancingpolicy,

d. maturity matching financing policy.

18.Which type of current asset financing policy provides the lowest expected return?

a. compromise financing policy,

b. flexible financing policy,

c. restrictivefinancingpolicy,

d. maturity matching financing policy.

19.What is the best way to control payables disbursements

a. lockbox services,

b. departmentalization,

c. concentrationbanking.

d. payables centralization,

20.Which is not one of the three most popular ways to speed collections?

a. Negative float,

b. Lockbox services,

c. Concentrationbanking,

d. Electronic claims processing.

21.Using financial statements to assess the financial condition of the business is;

a. Financial statement analysis,

b. Operating indicator analysis,

c. Bothoftheabove.

22.Using comparative analysis is best for determining; a. How your firm performed compared to your competitors,

b. How your firm performed compared to last year,

c. How your competitors performed last year.

23.Using trend analysis is easiest with;

A. How your firm performed compared to your competitors,

B. How your firm performed compared to last year,

C. How your competitors performed last year.

24.Inflation can distort which analysis?

a. Comparative analysis,

b. Trend analysis, c. Bothoftheabove.

25.A short-term creditor would be most concerned with which category of ratios?

a. Liquidity ratios,

b. Profitability ratios, c. Debtmanagementratios,

d. Asset management ratios,

26.An investor would be most concerned with which category of ratios?

a. Liquidity ratios,

b. Profitability ratios, c. Debtmanagementratios,

d. Asset management ratios.

27.A lease that provides for both the financing and maintenance of an asset

A. Is a Financial Lease,

B. Is an Operating Lease,

C. Is neither an Operating Lease or a Financial Lease

D. Can be both an Operating Lease or a Financial Lease.

28. The cancelation of a lease would be done most likely by

A.The lessee in a Financial Lease,

B. The lessee in a Financial Lease,

C. The lessor in an Operating Lease,

D. The lessee in an Operating Lease.

29. A lease that is a contractual obligation for the lessee

A. Is a Financial Lease,

B. Is an Operating Lease,

C. Is neither an Operating Lease or a Financial Lease,

D. Can be both an Operating Lease or a Financial Lease.

30. A lease that is designed to cover the full cost of the leased asset

A. Is a Financial Lease,

B. Is an Operating Lease,

C. Is neither an Operating Lease or a Financial Lease.

D. Can be both an Operating Lease or a Financial Lease,