FIN 571 TUTOR Let's Do This /fin571tutor.com FIN 571 TUTOR Let's Do This /fin571tutor.com | Page 30

D. Periodic interest
E. Daily interest
Question 27 Which one of the following statements is false?
A. If sales are seasonal, the percentages shown on an aging schedule will
vary during the year.
B. Aging schedules are used to monitor accounts receivable.
C. An aging schedule includes only overdue accounts
D. Investments in accounts equal average daily sales times average
collection period.
E. Collection efforts may involve legal action.
Question 28 Which one of these is a correct definition ?
A. Long-term debt is defined as a residual claim on a firm’s assets.
B. Current assets are assets with short lives, such as inventory,
C. Tangible assets are fixed assets such as patents.
D. Current liabilities are debts that must be repaid in 18 months or less.
E. Net working capital equals current assets plus current liabilities.
Question 29 Futures contracts contrast with forward contracts by:
A. Allowing the seller to deliver any day during the delivery month.
B. Requiring contract fulfilment by the two originating parties.
C. Providing an option for the buyer rather than an obligation.
D. Marking to the market on a weekly basis.
E. Allowing the parties to negotiate the contract size.
Question 30 The higher the inventory turnover, the:
A. Lesser the amount of inventory held by a firm.
B. Higher the inventory as a percentage of total assets.
C. Less time inventory items remain on the shelf.
D. Greater the inventory of inventory help by a firm.
E. Longer it takes firm to sell its inventory.
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FIN 571 Final Exam Guide Set 2 (NEW)