QUESTION 6: The unadjusted cash balance is what the cash balance would be if the firm did not have any short-term borrowing during the month.

1. True

   False

QUESTION 12: The break-even point is the level of sales (in units or dollars) that causes profits, however, measured, to be equal to zero.

1. True

   False

2.5 points

QUESTION 13: Operating leverage is similar to financing leverage but the fixed costs we are interested in are fixed financing costs such as interest expense.

1. True

   False

2.5 points

QUESTION 14: As sales increase above the break-even point, leverage will increase regardless of the measure being used.

1. True

   False

2.5 points

QUESTION 15 :

1. Refer to the following selected financial information from McCor, LLC.

   1	A	B
   2	Cash	$37,500
   3	Short-term investments	50,000
   4	Accounts receivable, net	21,000
   5	Inventory	43,560
   6	Supplies	5,500
   7	Plant assets	505,000
   8	Accounts Payable	110,000

   Using an Excel formula, how would you calculate the Acid-test ratio using the above cells?

   		=B8/B2
   		=SUM(B2:B6)/B8
   		=B8/SUM(B2:B7)
   		=SUM(B2:B4)/B8

2.5 points

QUESTION 16: To use Goal Seek you must have a target cell that contains a formula and another cell on which it depends.

1. True

   False