公司理财精要版原书第12版习题库答案Ross12e-Chapter02-TB

1FundamentalsofCorporateFinance,12e(Ross)Chapter2FinancialStatements,Taxes,andCashFlow1)Whichoneofthefollowingisclassifiedasatangiblefixedasset?A)AccountsreceivableB)ProductionequipmentC)CashD)PatentE)Inventory2)Whichoneofthefollowingisacurrentasset?A)AccountspayableB)TrademarkC)AccountsreceivableD)NotespayableE)Equipment3)Whichoneofthefollowingisincludedinafirm'smarketvaluebutyetisexcludedfromthefirm'saccountingvalue?A)RealestateinvestmentB)GoodreputationofthecompanyC)EquipmentownedbythefirmD)MoneyduefromacustomerE)Anitemheldbythefirmforfuturesale4)Whichoneofthefollowingisacurrentliability?A)Notepayabletoasupplierin13monthsB)AmountduefromacustomerintwoweeksC)AccountpayabletoasupplierthatisduenextweekD)Loanpayabletothebankin18monthsE)Amountduefromacustomerthatispastdue5)Whichoneofthefollowingwilldecreasethevalueofafirm'snetworkingcapital?A)UsingcashtopayasupplierB)DepreciatinganassetC)CollectinganaccountsreceivableD)PurchasinginventoryoncreditE)Sellinginventoryataloss6)Whichoneofthefollowingstatementsconcerningnetworkingcapitaliscorrect?A)Networkingcapitalincreaseswheninventoryispurchasedwithcash.B)Networkingcapitalexcludesinventory.C)Totalassetsmustincreaseifnetworkingcapitalincreases.D)Networkingcapitalmaybeanegativevalue.E)Networkingcapitalistheamountofcashafirmcurrentlyhasavailableforspending.7)Whichoneofthefollowingstatementsconcerningnetworkingcapitaliscorrect?2A)Afirm'sabilitytomeetitscurrentobligationsincreasesasthefirm'snetworkingcapitaldecreases.B)Anincreaseinnetworkingcapitalmustalsoincreasecurrentassets.C)Networkingcapitalincreaseswheninventoryissoldforcashataprofit.D)Firmswithequalamountsofnetworkingcapitalarealsoequallyliquid.E)Networkingcapitalisapartoftheoperatingcashflow.8)Whichoneofthefollowingaccountsisthemostliquid?A)InventoryB)BuildingC)AccountsReceivableD)EquipmentE)Land9)Whichoneofthefollowingrepresentsthemostliquidasset?A)$100accountreceivablethatisdiscountedandcollectedfor$96todayB)$100ofinventorythatissoldtodayoncreditfor$103C)$100ofinventorythatisdiscountedandsoldfor$97cashtodayD)$100ofinventorythatissoldtodayfor$100cashE)$100ofaccountsreceivablethatwillbecollectedinfullnextweek10)Whichoneofthefollowingstatementsrelatedtoliquidityiscorrect?A)Liquidassetstendtoearnahighrateofreturn.B)Liquidassetsarevaluabletoafirm.C)Liquidassetsaredefinedasassetsthatcanbesoldquicklyregardlessofthepriceobtained.D)Inventoryismoreliquidthanaccountsreceivablebecauseinventoryistangible.E)Anyassetthatcanbesoldisconsideredliquid.11)Shareholders'equity:A)isreferredtoasafirm'sfinancialleverage.B)isequaltototalassetsplustotalliabilities.C)decreaseswhenevernewsharesofstockareissued.D)includespatents,preferredstock,andcommonstock.E)representstheresidualvalueofafirm.12)Asthedegreeoffinancialleverageincreases,the:A)probabilityafirmwillencounterfinancialdistressincreases.B)amountofafirm'stotaldebtdecreases.C)lessdebtafirmhasperdollaroftotalassets.D)numberofoutstandingsharesofstockincreases.E)accountspayablebalancedecreases.313)Thebookvalueofafirmis:A)equivalenttothefirm'smarketvalueprovidedthatthefirmhassomefixedassets.B)basedonhistoricalcost.C)generallygreaterthanthemarketvaluewhenfixedassetsareincluded.D)moreofafinancialthananaccountingvaluation.E)adjustedtothemarketvaluewheneverthemarketvalueexceedsthestatedbookvalue.14)Thevalueofwhichoneofthefollowingisincludedinthemarketvalueofafirmbutisexcludedfromthefirm'sbookvalue?A)OfficeequipmentB)CopyrightC)DistributionwarehouseD)Employee'sexperienceE)Landacquiredover25yearsago15)Yourecentlypurchasedagrocerystore.Atthetimeofthepurchase,thestore'smarketvalueanditsbookvaluewereequal.Thepurchaseincludedthebuilding,fixtures,andinventory.Whichoneofthefollowingismostapttocausethemarketvalueofthisstoretobelessthanitsbookvalue?A)AsuddenandunexpectedincreaseininflationB)ThereplacementofoldinventoryitemswithmoredesirableproductsC)ImprovementstothesurroundingareabyotherstoreownersD)ConstructionofanewrestrictedaccesshighwaylocatedbetweenthestoreandthesurroundingresidentialareasE)Additionofastoplightatthemainentrancetothestore'sparkinglot16)Whichoneofthefollowingisthefinancialstatementthatshowstheaccountingvalueofafirm'sequityasofaparticulardate?A)IncomestatementB)Creditor'sstatementC)BalancesheetD)StatementofcashflowsE)Dividendstatement17)Networkingcapitalisdefinedas:A)totalliabilitiesminusshareholders'equity.B)currentliabilitiesminusshareholders'equity.C)fixedassetsminuslong-termliabilities.D)totalassetsminustotalliabilities.E)currentassetsminuscurrentliabilities.418)Whichoneofthesesetsforththecommonsetofstandardsandproceduresbywhichauditedfinancialstatementsareprepared?A)MatchingprincipleB)CashflowidentityC)GenerallyAcceptedAccountingPrinciplesD)FinancialAccountingReportingPrinciplesE)StandardAccountingValueGuidelines19)Whichoneofthefollowingisthefinancialstatementthatsummarizesafirm'srevenueandexpensesoveraperiodoftime?A)IncomestatementB)BalancesheetC)StatementofcashflowsD)TaxreconciliationstatementE)Marketvaluereport20)Noncashitemsreferto:A)fixedexpenses.B)inventoryitemspurcha