[Q1] (TCO E) Creditors of a business are more concerned with the future cash flows of a business than the:

Group of answer choices

a. future return on equity.

b. past cash flows of a business.

c. overall expenses.

d. All of the above

[Q2] (TCO E) Which of the following is reported in the equity section of the balance sheet?

Group of answer choices

a. Redeemable preferred stock

b. Investment in affiliates

c. Treasury stock

d. Minority interest in consolidated subsidiaries

[Q4] (TCO E) The risk to shareholders increases when a company increases:

Group of answer choices

a. the amount of debt it has.

b. the amount of capital it has.

c. the amount of cash it has.

d. the amount of assets it has.

[Q5] (TCO E) Which of the following is not a component of pension expense?

Group of answer choices

a. Service cost

b. Interest cost

c. Actual return on plan assets

d. Expected return on plan assets

[Q6] (TCO E) One way for a company to increase its book value per share is to:

Group of answer choices

a. issue long term debt.

b. retire long term debt.

c. increase dividend payout ratio.

d. buy back shares at market prices below their book value.

[Q7] (TCO E) When considering defined benefit pension plans, which of the following will not increase the projected benefit obligation (PBO)?

Group of answer choices

a. A decrease in the discount rate

b. An increase in estimated compensation growth

c. A decrease in the expected rate of return on plan assets

d. An increase in expected average length of lives of employees

[Q8] TCO E) Which of the following is not a component of pension cost under defined benefit plans?

Group of answer choices

a. Service cost

b. Amortization of prior service costs

c. Interest cost

d. Amortization of prior interest costs

[Q9] (TCO E) Investing in equity is considered toinvolve more risk than investing in:

Group of answer choices

a. stocks.

b. bonds.

c. cash.

d. gold.

[Q10] (TCO E) Which of the following statements about stock dividends is true?

Group of answer choices

a. Stock dividends increase the number of shares outstanding.

b. Stock dividends are more valuable than stock splits.

c. Stock dividends are recorded as a reduction in cash.

d. Stock dividends are dividends given in the form of stock from another company.