Exam 1 Review UPDATED ACTUAL Questions And Correct Answers
Terms in this set (50)
T/F A corporation's stockholders elect its CEO. False
A firm conducting an IPO of common stock sold 1 million 60 million (5 million x $12) Shares outstanding x price on the secondary market
new shares in the offering at an offer price of $10 per
share. After the offering, the firm had 5 million shares
outstanding, and the price of those shares in the
secondary market was $12. The firm's market
capitalization is ___ _.
, A firm has a year-end retained earnings balance of 240 million (220,000 + 50,000 - 30,000). Retained earnings balance + net profit
$220,000 for 2018. The firm reported net profits after after taxes - paid dividends
taxes of $50,000 and paid dividends of $30,000 in 2019.
The firm's retained earnings balance at 2019 year end is
________.
A(n) ________ provides a financial summary of a firm's Income Statement
operating results during a specified period.
A(n)________ is hired by a firm to find prospective buyers for Investment bank
its new stock or bond issue.
Communication skills are very important to financial and they work together in cross-functional teams and need to understand how
nonfinancial managers because ________. members of their teams think
Johnson, Inc. has just ended the calendar year making a $3,000 and -$7,000, respectively.
sale in the amount of $10,000 of merchandise purchased Net profit = sale - purchase. Cash flow only sales & purchases in the year.
during the year at a total cost of $7,000. Although the firm
paid in full for the merchandise during the year, it is yet to
collect at year end from the customer. The net profit and
cash flow from this sale for the year are _ _.
Long-term debt instruments used by both government Bonds
and business are known as __ _.
Most businesses raise money by selling their securities in Public offering
a _____.
Operating profit is known as ________. Earnings before interest and taxes
T/F Retained earnings represent the cumulative total of True
all earnings, net of dividends, that have been retained
and reinvested in the firm since its inception.
The Federal Deposit Insurance Corporation (FDIC) ________. is an agency, created by the Glass-Steagall Act, that monitors banks on a regular
basis to ensure that they were safe and sound
The Glass-Steagall Act ________. separated the activities of commercial and investment banks
T/F The Glass-Steagall Act was imposed to allow False
commercial and investment banks to combine and work
together.
The Gramm-Leach-Bliley Act ________. allows business combinations between commercial banks, investment banks, and
insurance companies
T/F The Securities Act of 1933 focuses on regulating the True
sale of securities in the primary market, whereas the 1934
Act deals with the regulations governing the transactions
in the secondary market.
Terms in this set (50)
T/F A corporation's stockholders elect its CEO. False
A firm conducting an IPO of common stock sold 1 million 60 million (5 million x $12) Shares outstanding x price on the secondary market
new shares in the offering at an offer price of $10 per
share. After the offering, the firm had 5 million shares
outstanding, and the price of those shares in the
secondary market was $12. The firm's market
capitalization is ___ _.
, A firm has a year-end retained earnings balance of 240 million (220,000 + 50,000 - 30,000). Retained earnings balance + net profit
$220,000 for 2018. The firm reported net profits after after taxes - paid dividends
taxes of $50,000 and paid dividends of $30,000 in 2019.
The firm's retained earnings balance at 2019 year end is
________.
A(n) ________ provides a financial summary of a firm's Income Statement
operating results during a specified period.
A(n)________ is hired by a firm to find prospective buyers for Investment bank
its new stock or bond issue.
Communication skills are very important to financial and they work together in cross-functional teams and need to understand how
nonfinancial managers because ________. members of their teams think
Johnson, Inc. has just ended the calendar year making a $3,000 and -$7,000, respectively.
sale in the amount of $10,000 of merchandise purchased Net profit = sale - purchase. Cash flow only sales & purchases in the year.
during the year at a total cost of $7,000. Although the firm
paid in full for the merchandise during the year, it is yet to
collect at year end from the customer. The net profit and
cash flow from this sale for the year are _ _.
Long-term debt instruments used by both government Bonds
and business are known as __ _.
Most businesses raise money by selling their securities in Public offering
a _____.
Operating profit is known as ________. Earnings before interest and taxes
T/F Retained earnings represent the cumulative total of True
all earnings, net of dividends, that have been retained
and reinvested in the firm since its inception.
The Federal Deposit Insurance Corporation (FDIC) ________. is an agency, created by the Glass-Steagall Act, that monitors banks on a regular
basis to ensure that they were safe and sound
The Glass-Steagall Act ________. separated the activities of commercial and investment banks
T/F The Glass-Steagall Act was imposed to allow False
commercial and investment banks to combine and work
together.
The Gramm-Leach-Bliley Act ________. allows business combinations between commercial banks, investment banks, and
insurance companies
T/F The Securities Act of 1933 focuses on regulating the True
sale of securities in the primary market, whereas the 1934
Act deals with the regulations governing the transactions
in the secondary market.
