公司理财(英文版)题库2.doc

CHAPTER 2
Financial Statements & Cash Flow
Multiple Choice Questions:
I. DEFINITIONS
BALANCE SHEET
b 1. The financial statement showing a firm’s accounting value on a particular date is the:
a. e statement.
b. balance sheet.
c. statement of cash flows.
d. tax reconciliation statement.
e. shareholders’ equity sheet.
Difficulty level: Easy
CURRENT ASSETS
c 2. A current asset is:
a. an item currently owned by the firm.
b. an item that the firm expects to own within the next year.
c. an item currently owned by the firm that will convert to cash within the next 12 months.
d. the amount of cash on hand the firm currently shows on its balance sheet.
e. the market value of all items currently owned by the firm.
Difficulty level: Easy
LONG-TERM DEBT
b 3. The long-term debts of a firm are liabilities:
a. e due within the next 12 months.
b. that do e due for at least 12 months.
c. owed to the firm’s suppliers.
d. owed to the firm’s shareholders.
e. the firm expects to incur within the next 12 months.
Difficulty level: Easy
NET WORKING CAPITAL
e 4. Net working capital is defined as:
a. total liabilities minus shareholders’ equity.
b. current liabilities minus shareholders’ equity.
c. fixed assets minus long-term liabilities.
d. total assets minus total liabilities.
e. current assets minus current liabilities.
Difficulty level: Easy
LIQUID ASSETS
d 5. A(n) ____ asset is one which can be quickly converted into cash without significant loss in value.
a. current
b. fixed
c. intangible
d. liquid
e. long-term
Difficulty level: Easy
E STATEMENT
a 6. The financial statement summarizing a firm’s performance over a period of time is the:
a. e statement.
b. balance sheet.
c. statement of cash flows.
d. tax reconciliation statement.
e. shareholders’ equity sheet.
Difficulty level: Easy
NONCASH ITEMS
d 7. Noncash items refer to:
a. the credit sales of a firm.
b. the accounts payable of a firm.
c.