FINA 3770 EXAM NEWEST 2025 EXAM COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+||BRAND NEW!!
._____ are the principal lender-savers in the economy. - ANSWER-Households
.A good capital budgeting decision is: - ANSWER-One in which the perceived
benefits of the project are more than the cost of the asset.
.A highly liquid financial instrument with a maturity of 90 days would be traded
in: - ANSWER-The money market
.A highly liquid financial instrument with a maturity of 90 days would be traded
in: - ANSWER-The money market
.A society's idea about what actions are right and wrong are termed as: -
ANSWER-Ethics
.According to the balance sheet identity, total assets must equal: - ANSWER-
Total liabilities plus owners' equity
.According to the realization principle, revenue from a sale of a firms products
are recognized when the: - ANSWER-Sale occurs whether or not cash is actually
received
,.Accounting standards prescribed by generally excepted accounting principles
(GAAP) are important because they: - ANSWER-Make the financial statements
of all firms standardized, allow one to examine a firm performance with ease
over a period of time, make it possible for management or analyst to compare a
firms performance with that of other competitors
.Among the following, who is typically responsible for managing a large
corporation's financial function? - ANSWER-The CFO
.An example of an agency cost is: - ANSWER-A manager expensing a lavish
dinner on the company expense report
.An important function of the financial system is: - ANSWER-To direct money to
the best investment opportunities in the economy
.An income statement is: - ANSWER-Like a video recording of a firm's revenue
and expenses during a period of time
.An officer of a firm who is a majority owner in a competing firm will probably
be subject to - ANSWER-A conflict of interest with his/her stockholders.
.And a public corporation, which of the following reports directly to the owners
of a firm? - ANSWER-Board of Directors
.Anne Morgan wants to borrow $6,000 for a period of four years. She has two
choices. Her bank will lend her the amount at 7.25 percent compounded
annually. She can also borrow from her firm and will have to repay a total of
, $8,130.93 at the end of four years. Should Anne choose her bank or the firm,
and what is the interest rate if she borrows from her firm? (Round to the
nearest percent.) - ANSWER-She should borrow from the bank as the firm is
charging a higher interest rate of 8%
.At what rate must $4000 be compounded annually for it to increase to $40,000
in 15 years? Around the final answer to the nearest two decimals. - ANSWER-
16.59%
.Boretti has $400,000 in a stock fund. The fund pays a 10% return, compounded
annually. If he does not make another deposit into the account, how long will it
take for the account to increase to $2 million? (Do not round intermediate
calculations. Round the final answer to two decimal places.) - ANSWER-16.89
years
.Carlos Lopes is looking to invest for the next three years. He is looking to invest
$7,500 today in a bank CD that will earn interest at 5.75 percent annually. How
much will he have at the end of three years? (Round to nearest dollar.) -
ANSWER-$8770
.Castelda company issue zero coupons bonds, which mature in 30 years. these
bonds can be bought for $999.38 and then pay no annual interest payments,
only $100,000 at maturity what is the annual percentage cost of these bonds to
the issuing company? - ANSWER-16.59%
.Celesta Frank wants to go on a cruise in three years. She could earn 8.2 percent
compounded monthly in an account if she deposits the money today. She needs
to have $10,000 in three years. How much will she have to deposit today?
(Round to the nearest dollar.) - ANSWER-$7826
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+||BRAND NEW!!
._____ are the principal lender-savers in the economy. - ANSWER-Households
.A good capital budgeting decision is: - ANSWER-One in which the perceived
benefits of the project are more than the cost of the asset.
.A highly liquid financial instrument with a maturity of 90 days would be traded
in: - ANSWER-The money market
.A highly liquid financial instrument with a maturity of 90 days would be traded
in: - ANSWER-The money market
.A society's idea about what actions are right and wrong are termed as: -
ANSWER-Ethics
.According to the balance sheet identity, total assets must equal: - ANSWER-
Total liabilities plus owners' equity
.According to the realization principle, revenue from a sale of a firms products
are recognized when the: - ANSWER-Sale occurs whether or not cash is actually
received
,.Accounting standards prescribed by generally excepted accounting principles
(GAAP) are important because they: - ANSWER-Make the financial statements
of all firms standardized, allow one to examine a firm performance with ease
over a period of time, make it possible for management or analyst to compare a
firms performance with that of other competitors
.Among the following, who is typically responsible for managing a large
corporation's financial function? - ANSWER-The CFO
.An example of an agency cost is: - ANSWER-A manager expensing a lavish
dinner on the company expense report
.An important function of the financial system is: - ANSWER-To direct money to
the best investment opportunities in the economy
.An income statement is: - ANSWER-Like a video recording of a firm's revenue
and expenses during a period of time
.An officer of a firm who is a majority owner in a competing firm will probably
be subject to - ANSWER-A conflict of interest with his/her stockholders.
.And a public corporation, which of the following reports directly to the owners
of a firm? - ANSWER-Board of Directors
.Anne Morgan wants to borrow $6,000 for a period of four years. She has two
choices. Her bank will lend her the amount at 7.25 percent compounded
annually. She can also borrow from her firm and will have to repay a total of
, $8,130.93 at the end of four years. Should Anne choose her bank or the firm,
and what is the interest rate if she borrows from her firm? (Round to the
nearest percent.) - ANSWER-She should borrow from the bank as the firm is
charging a higher interest rate of 8%
.At what rate must $4000 be compounded annually for it to increase to $40,000
in 15 years? Around the final answer to the nearest two decimals. - ANSWER-
16.59%
.Boretti has $400,000 in a stock fund. The fund pays a 10% return, compounded
annually. If he does not make another deposit into the account, how long will it
take for the account to increase to $2 million? (Do not round intermediate
calculations. Round the final answer to two decimal places.) - ANSWER-16.89
years
.Carlos Lopes is looking to invest for the next three years. He is looking to invest
$7,500 today in a bank CD that will earn interest at 5.75 percent annually. How
much will he have at the end of three years? (Round to nearest dollar.) -
ANSWER-$8770
.Castelda company issue zero coupons bonds, which mature in 30 years. these
bonds can be bought for $999.38 and then pay no annual interest payments,
only $100,000 at maturity what is the annual percentage cost of these bonds to
the issuing company? - ANSWER-16.59%
.Celesta Frank wants to go on a cruise in three years. She could earn 8.2 percent
compounded monthly in an account if she deposits the money today. She needs
to have $10,000 in three years. How much will she have to deposit today?
(Round to the nearest dollar.) - ANSWER-$7826
