Finance Homework

26) 20) An organizational relationship that links two or more independent business entities in a common endeavor is called a. corporation projections b. business chains c. a strategic alliance d. supply relations have control over the firm, have liability limited to the investments, and can transfer ownership without affecting the firm's operations. a. Stockholders b. Top management C. Debtors d. Creditors 21) Profits less withdrawals (dividends) over the life of the business are categorized as _interest rates vary with the changes in the prime rate a. Sub prime b. Capital C. Primary d. Floating a. retained earnings b. operation income C. gross income d. net earnings 22) Rent, employee salaries, insurance, and office supplies are examples of a place costs b. fixed costs C. gross expenses d. place expenses 28) Depreciation is an operating expense because a. all companies depreciate assets b. they are short term liabilities c. they are actual expenses incurred for providing a product to customers d. liabilities are expenses 23) Costs related to marketing and selling a firm's product or service, general and administrative expenses, and depreciation are found in the section of an income statement a. COGS b. Net expenses C. Owner's equity d. Operating expenses 29) A is a report showing a firm's assets, liabilities, and owners' equity at a specific point in time a. Income Statement b. Balance sheet C. Cash Flow Analysis d. Profit and Loss Statement 30) A _outlines the basic concept underlying a business. a. Marketing plan b. Asset statement C. Operation statement d. business plan 24) A _marketing strategy recognizes the existence of several distinct segments but focuses on only the most profitable segment. a. non-essential b. multiple-segment c. single-Segment d. profitable segment 31) Total debt divided by total assets is the calculation for a_ a. debt ratio. b. asset ratio C. capital ratio d. usage ratio 25) Accounts payable, accrued expenses, and short-term notes are categorized as a. Current debt b. Current assets C. Accrued margin d. Term liability 32) A reports firm's income (cash) when it is received and expenses when they are paid. a. Profit and Loss Statement b. Balance Sheet C. Net Operating Sheet d. Cash Flow Statement