FINA 3313 Exam 1 Flr Quiz ReviewComplete Q&A

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FINA 3313 Exam 1 Flr Quiz Review-
Complete Q&A


Finance is mainly a backward-looking summary of past decisions - correct-answer
-Flase




The market value of an assets is its cost at the time of purchase - correct-answer -
False




Book values have the disadvantage that they change unpredictably and may not
be easy to measure. - correct-answer -Flase




______ : accounting item to estimate a reduction in the value of an asset with the
passage of time, due in particular to wear and tear - correct-answer -Depreciation
Expense




Select all the different methods that can be used to compute depreciation
expense - correct-answer --Modified Accelerated Cost Recovery System (MACRS)
-Straight-line Depreciation

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-Accelerated Cost Recovery System (ACRS)




Depreciation represents a change in cash holdings so it impacts earnings after
taxes - correct-answer -False




The top corporate tax rate is ... percent for 2018 and after - correct-answer -21




Label the Variables:
Operating Cash Flow (OCF) = X - Y + Z - correct-answer --X= EBIT
-Y= taxes
-Z= depreciation




Net income is determined by accounting items such as depreciation and
represents actual changes in the cash available to a firm - correct-answer -FLASE




The Balance Sheet shows both the assets of a firm and how those assets were
financed.
1. The left-hand side of the balance sheet lists
2.The right-hand side of the balance sheet lists