BUS 401 Principles of Finance questions and answers solution docs 2020 liberty university

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BUS 401 Principles of Finance questions and answers solution docs 2020 liberty university 21.) Which business development increases cash? • Decrease in long term liabilities • Decrease in ac... counts receivable • Increase in PP&E • Increase in inventory 22.) Which statement shows a company’s cost of revenues? • Statement of cash flows • Balance sheet • Income statement 23.) For which of these ratios would a lower value indicate lower risk to the firm’s operations? • Current ratio • Debt ratio • Quick ratio 24.) What is Moody’s formula for liquidity? • Cash & marketable securities/ total assets • Total assets – goodwill - intangibles / total debt • Net after – tax income before X-items + depreciation – dividends/ total debt + 8 X rental expense 25.) In trend statements, each account is re-expressed as a multiple of what? • That year’s revenue • The benchmark year’s balance • That year’s total assets 26.) which calculation measures the profitability of a company’s operations? • Gross profit minus indirect costs • EBIT minus financing costs and taxes • Revenue minus COGS 27.) Which ratios measure the firm’s ability to meet principle and interest payments over the long term? • Liquidity ratios • Profitability ratios • Debt ratios 28.) When a firm issues new shares of common stock, which of these measures increases? • P/E • BVPS • DPS • EPS 29.) which of these changes would indicate increased risk to the firm’s operations? • An increase in the quick ratio • A decrease in the times interest earned ratio • A decrease in the debt ratio 30.) when a firm buys back outstanding shares of common stock, which of these measures increase? • P/B and P/E • P/E and EPS • BVPS and P/B • EPS and BVPS[ [Show More]

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