art De Placinthe Ash 1. Which of the following is a false statemen The balance sheet tells investors exactly what we form is worth Assets are usually listed on the balance sheets con 6. Accounting income is rarely equal to form cash dow d. Accounting statements are usually prepared to match the timing of and expenses 4. All public companies are required to file timely, incial statements for purposes of public perusal 2. Interest eamed on both the initial principal and the interest reinvested from price periods is called a free interest b. annual interest . compound interest d. simple interest c. interest on interest 3. An) asset is one which can be quickly converted into cash without significant loss in value. a current b. fixed liquid . intangible e long-term 4. Of the following, which statement regarding agency costs is true? a. An indirect agency cost occurs when fimm management takes on risky projects that favorably affect the stock price, even though the managers are worried about keeping their jobs. b. A corporate expenditure that benefits stockholders but harms management is an agency cost. c. Agency costs are directly observable in the stock market d. An agency problem does not exist when there are conflicts of interest between principals and agents. An agency problem exists when there is a conflict of interest between the stockholders and management of a firm. A financial manager is responsible for deciding whether an investment in new facturing equipment should be financed with debt, preferred stock, or Which of the following financial management areas would be ision process? to low mich would you have to investoday compare OMR 35.000 available for the purchase of cat five years & OMR 20.267.26 b. OMR 26,370.10 COMR 25,149.37 d. OMR 22,747.60 . OMR 24.147.25 11. At the end of each year for the next years you will receive cash flows OMR 500. If the appropriate discount rate is 7.3%. how much would you pay for this annuity? a OMR 4,000.00 b. OMR 2.928.65 c. OMR 3,148.30 d. OMR 5,614.93 COMR 5.223.19 12. At 5% interest, how long does it take to triple your money? a 14.21 years b. 20:38 years c. 22.52 years d. 18.89 years e. None of the above is true