FIN 301Unit 1 Milestone 1 Principles of finance.

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Score 22/27




You passed this Milestone
22 questions were answered correctly.
UNIT 1 — MILESTONE 1
5 questions were answered incorrectly.
1

If a balance sheet shows owner's equity of $10 million, current liabilities of $6 million and long-term
liabilities of $15 million, then what are the total assets of the company?.



$19 million



$16 million



$31 million



$25 million

CONCEPT
The Balance Sheet
2

Betina is trying to convince a buyer to purchase her company. The buyer wants to know what the company's
overall financial condition was on December 31, 2018.

What type of financial statement should Betina provide?



Cash flow statement
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Income statement



Statement of changes in equity



Balance sheet

CONCEPT
Introducing Financial Statements
3

Valuation of a business relies on __________.



keeping accurate financial statements



maximizing market value



strengthening corporate governance



maximizing shareholder value

CONCEPT
Goals of Financial Management
4

Which market is intended to benefit from the recent trend of microfinance?



Corporations



Impoverished individuals



Foreign governments

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