QUESTION 17

1. Which of thefollowing items are included in Balance Sheet?

   		Cash
   		Revenue
   		Cost of Inventory sold
   		Cost of Goods Sold

2 points

QUESTION 18

1. Which of the following is not part of Liability?

   		Short-Term Investment
   		Notes Payable
   		Income Tax Payable
   		Bonds Payable

2 points

QUESTION 19

1. Which of the following is not an activity reported in Cash Flow Statement?

   		Banking Activity
   		Operating Activity
   		Financing Activity
   		Investing Activity

2 points

QUESTION 20

1. Inventory Conversion Period is a ratio of Inventory and

   		Average Cost of Goods Sold
   		Average Receivables
   		Average Inventory
   		Average Payables

2 points

QUESTION 21

1. What is the best description of Payables Deferreal Period?

   		Length of time between purchase of goods and services and payment of cash for them
   		Length of time between purchase of goods and services and receiving payment for them from customers
   		Length of time between receiving invoices for purchase of goods and services and payment of cash for them
   		Length of time between purchase of goods and services and selling of the finished product to customers

2 points

QUESTION 22

1. Present Value of Perpetuity will increase if

   		Payment amount decreases
   		Interest rate (I) per year increases
   		Frequency of Payment increases
   		Interest rate (I) per year decereaes

2 points

QUESTION 23

1. What is the correct statement regarding coupon rate of a Bond?

   		Coupon rate is used to calculate par value of the bond
   		Coupon rate is another term for yield to maturity of bond
   		Coupon rate is used to calculate present value of the bond
   		Coupon rate is used to calculate interest paid each year

2 points

QUESTION 24

1. Real risk free rate, r*, is 0.5% and inflation premium (IP) is 1.5%. What can be inferred from this statement?

   		Expected return on government issued bonds (T-bill) is likely 2%
   		Expected return on any bond isssued is likely 2%
   		Expected return on any bond isssued is likely 2% plus market risk premium
   		Expected return on any bond isssued is likely 2% plus default risk premium

2 points

QUESTION 25

1. Stand Alone Risk is appicable for

   		Stocks that are not traded in stock exchange
   		Government issued bonds portfolio
   		Individual stock or bond
   		Portfolio of stocks