SOPHIA Principles of Finance Unit 1 Milestone 1.

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27 questions were answered correctly. 1 Preparing a cash flow forecast helps a company to avoid __________.  opportunity costs  higher financing costs  net losses  liquidity CON... CEPT Building a Cash Budget 2 How are assets typically organized on a balance sheet?  In order of liquidity, with least liquid assets first.  In order of value, with most valuable assets first.  In order of liquidity, with more liquid assets first.  In order of value, with least valuable assets first. CONCEPT Standardizing Financial Statements 3 Which organization most fully protects owners from personal liabilities and is taxed separately?  LLC .  S Corp  C Corp  Partnership CONCEPT Tax Considerations 4 Which market is intended to benefit from the recent trend of microfinance?  Foreign governments  Impoverished individuals  Venture capitalists  Corporations CONCEPT Trends and Issues in Finance 5 Why are ethical issues complicated for businesses that operate in the global economy?  Because their employees won't know what the laws are in other countries.  Because they don't have as much moral character as small, local businesses.  Because they tend to have more employees.  Because different cultures have different norms and values. CONCEPT Ethics: An Overview 6 Xander is looking for ways to reduce his non-operating expenses to improve his company's overall financial performance, so he consults his most recent income statement. Which of the following should he focus on?  Depreciation  Amortization  Wages  Income taxes CONCEPT The Income Statement 7 If Company A has a lower debt ratio than Company B, then Company A is likely to have __________ than Company B.  a higher level of financial risk  less financial flexibility  a greater ability to borrow  more total assets CONCEPT Debt Management Ratios 8 Ratios that measure the value of a company's stock are __________.  asset management ratios [Show More]

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