Which of the following is(are) a true statement(s) pertaining to bonds?

Select one:

a. Bonds can be sold at a discount, par, or payable.

b. Bonds can be sold at a discount, par, or premium.

c. The SEC sets the market price of a bond.

d. The issuing firm sets the price of a bond.

Question 7

In the statement of cash flows, an increase in the accounts receivable balance from the beginning of the period to the end of the period would:

Select one:

a. be added to net income because this represents earned revenues that have not been collected.

b. be subtracted from net income because this represents earned revenue provided by operating earnings.

c. be added to net income because this means that revenues were less than cash collected.

d. be subtracted from net income because this means that revenues were more than cash collected.

Question 8

Income from operations is:

Select one:

a. sometimes called the "bottom line."

b. sometimes used in the ROI calculation.

c. usually used in the ROE calculation.

d. usually calculated after income tax expense.

Question 9

The number of shares of a class of stock that are outstanding is:

Select one:

a. the number of shares authorized minus the number of shares issued.

b. the number of shares authorized minus the number of shares held as treasury stock.

c. the number of shares issued minus the number of shares held as treasury stock.

d. the number of shares issued minus the number of shares owned by directors.

Question 10

Question text

A higher P/E ratio means that:

Select one:

a. the stock is more reasonably priced.

b. the stock is relatively expensive.

c. investors are wary of the stock.

d. earnings are expected to decrease.