Foundations of Business Finance (Peregrine) question with correct answers 2023
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Course
Peregrine
Institution
Peregrine
Foundations of Business Finance (Peregrine) question with correct answers 2023True or false: The one fixed asset that is not depreciated is land because it seldom declines in value. - correct answer True
__________ liabilities are those due within one year. - correct answer Current
__________...
Foundations of Business Finance (Peregrine) question with correct answers 2023
True or false: The one fixed asset that is not depreciated is land because it seldom declines in value. - correct answer True
__________ liabilities are those due within one year. - correct answer Current
__________-__________ __________ liabilities are due after more than a year, and may include bonds, mortgages, and long-term loans. - correct answer Long-term debt
Name the three types of accounts listed as current liabilities on balance sheets. - correct answer (1) Accounts Payable
(2) Notes Payable
(3) Accrued Expenses
Accounts payable - correct answer The amounts owed for credit purchases by a firm
Notes payable - correct answer Outstanding short-term loans, typically from commercial banks
Accrued expenses - correct answer Costs that have been incurred by a firm which have not yet been paid; examples of accruals include taxes owed to the government and unpaid wages
The __________ __________ section of a balance sheet provides information about the claims against a firm held by investors who own preferred and common shares. - correct answer Stockholders' equity
The Stockholders' equity section of the balance sheet is reflected in four types of accounts. These include __________ __________, __________ __________, __________-__________-__________ __________ ___________ __________ __________, and __________ __________. - correct answer (1) preferred stock
(2) common stock
(3) paid-in-capital excess of par
(4) retained earnings
__________ __________ shows the total proceeds from the sale of preferred stock. - correct answer Preferred stock
__________-__________-__________ __________ __________ __________ __________ equals the number of shares outstanding multiplied by the original selling price of the shares, net of the par value. -
correct answer Paid-in-capital in excess of par
__________ __________ equals the number of outstanding common shares multiplied by the par value per share. - correct answer Common stock
__________ __________ (often $1) is an artifact of earlier pre-computer accounting methods used to track the number of outstanding shares. It has no relation to the actual value of the shares. - correct answer Par value
__________ __________ are the cumulative total of the earnings that the firm has reinvested in its assets and operations since its inception. - correct answer Retained earnings
The combined value of __________ __________ and __________-__________-__________ equals the proceeds the firm received when it originally sold shares to investors (including initial public offerings and rights offerings). - correct answer common stock, paid-in-capital
The __________ __________ entry on a balance sheet records the value of common shares that a firm currently holds in reserve. - correct answer treasury stock
The __________ __________ __________ __________ provides a summary of what cash has gone into and out of a firm because of its operations, investments, and financing activities during a year. It isolates the firm's operating, investment, and financing cash flows and reconciles them with changes in its cash and marketable securities during the year. - correct answer statement of cash flows
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