TEST #2: Chapters 5-8 Started: Oct 30 at 4:54pm Quiz Instructions IMPORTANT: you are only permitted ONE login attempt (no exceptions) for tests. Your 90 minute time limit begins when you log in & it CANNOT be halted for any reason. Good luck! Note: this is a timed quiz. You may check the remaining time you have at any point while taking the quiz by pressing the keyboard combination SHIFT, ALT, and T... Again: SHIFT, ALT, and T... Flag this Question Question 12pts Which of the following questions does break-even analysis attempt to address? Group of answer choices What is the most efficient level of current assets to employ? What is the most efficient level of variable expenses to employ? How much do changes in volume affect costs and profits? At what point does the firm earn a profit sufficient to the shareholders? Flag this Question Question 22pts In break-even analysis, the contribution margin is defined as Group of answer choices variable costs minus fixed costs. price per unit minus fixed costs. price per unit minus variable cost per unit. fixed costs minus variable costs. Flag this Question Question 32pts If a firm sells 40,000 units and the contribution margin on the firm's single product is $4.00 per unit and fixed costs are $60,000, what will the firm's operating profit be at this level of sales volume? Group of answer choices $145,000 $100,000 $30,000 $15,000 Flag this Question Question 42pts Sales are at 2,000 units at a cost of $20,000, then increase to 4,000 units at a cost of $40,000, and finally reach 6,000 units at a cost of $60,000. What are these costs called? Group of answer choices variable costs fixed costs committed costs semi-variable costs Flag this Question Question 52pts If the price per unit decreases because of competition but the cost structure remains the same Group of answer choices the break-even point falls. the break-even point is unaffected. Not enough information is given to determine an answer. the break-even point rises. Flag this Question Question 62pts If sales volume exceeds the break-even point, the firm will experience Group of answer choices an operating profit. an increase in plant and equipment. an operating loss. an increase in stock price. Flag this Question Question 72pts At the break-even point, a firm's profits are Group of answer choices equal to zero. less than zero. Not enough information is given to determine an answer. more than zero. Flag this Question Question 81pts A lower price for the firm's product will reduce the firm's break-even point. Group of answer choices True False Flag this Question Question 91pts The break-even chart shows a graphic effect of change in both revenue and market share. Group of answer choices True False Flag this Question Question 101pts Pricing and automation decisions can be made more clearly with break-even analysis. Group of answer choices True False Flag this Question Question 112pts What does float refer to? Group of answer choices short-term deposits trade and other payables Turnover time lag Flag this Question Question 122pts What is the goal of managing working capital? Group of answer choices to accelerate the cash flow cycle to accelerate the movement of retained earnings to improve relationships with customers to reduce the level of trade and other payables Flag this Question Question 132pts How can additional cash be obtained? Group of answer choices by stretching trade payables by paying suppliers on a cash basis by prepaying expenses by paying trade payables faster Flag this Question Question 142pts A ____________________ contributes to financing a business any time account credit is granted through trade payables. Group of answer choices debtor supplier banker none of these lender Flag this Question Question 152pts Other things held constant, which of the following will cause anincreasein net working capital? Group of answer choices Merchandise is sold. Payment is made in cash. Missing inventory is written off against retained earnings. Cash is used to buy marketable securities. Long-term bonds are retired with the proceeds of a preferred stock issue. A cash dividend is declared and paid. Flag this Question Question 162pts What is deducted from current assets to determine net working capital? Group of answer choices equity intangible assets long-term borrowings current liabilities Flag this Question Question 172pts The credit manager uses the ____________________ to analyze the creditworthiness of potential customers. Group of answer choices credit terms indemnification policy none of these credit-scoring system credit insurance policy Flag this Question Question 182pts Helena Furnishings wants toreduceits cash conversion cycle. Which of the following actions should it take? Group of answer choices Start paying its bills sooner, which would reduce the average accounts payable but not affect sales. Increases average inventory without increasing sales. Take steps to reduce the trade receivables conversion period. Sell common stock to retire long-term bonds. Sell an issue of long-term bonds and use the proceeds to buy back some of its common stock. Flag this Question Question 192pts What is included in cash in addition to a company's cash holdings? Group of answer choices inventories short-term deposits trade receivables long-term deposits Flag this Question Question 202pts Which of the following is not an inventory decision model used by companies to manage inventory? Group of answer choices inventory level process material requirements planning just-in-time inventory management inventory replenishment economic ordering quantity Flag this Question Question 211pts The average accounts receivables balance is a function of both the volume of credit sales and the days sales outstanding. Group of answer choices True False Flag this Question Question 221pts Trade discounts can help a company's cash flow at the expense of earnings and may very well be a good tradeoff. Group of answer choices True False Flag this