Financial securities that can be converted into cash at closing to their book value price are classified as_______________?
A. Inventories
B. Short-term investments
C. Cash equivalents
D. Long-term investments
A. Inventories
B. Short-term investments
C. Cash equivalents
D. Long-term investments
A. New expansion project
B. Old expanded project
C. Firm borrowing project
D. Product line selection
A. return ratios
B. market value ratios
C. marginal ratios
D. equity ratios
A. hurdle rate
B. capital rate
C. return rate
D. budgeting rate
If you have Rs. 850 and you plan to save it for 4 years with an interest rate of 10%, what will be the future value of your savings?
A. Rs. 1,000
B. Rs. 1,244
C. Rs. 1,331
D. Rs. 1,464
FV = PV * (1+ i) ^n
= 850 * (1+0.1)^4
= 1244
Standard Corporation sold fully depreciated equipment for Rs.5,000. This transaction will be reported on the cash flow statement as a(n):
A. Operating activity
B. Investing activity
C. Financing activity
D. None of the given options
Investing activities – changes in investments and long-term assets
Cash inflows:
From sale of property, plant, and equipment.
From sale of investments in debt or equity securities of other entities.
From collection of principal on loans to other entities.
Cash outflows:
To purchase property, plant, and equipment.
To purchase investments in debt or equity securities of other entities.
To make loans to other entities..
A. Fixed payment investment
B. Lump sum amount
C. Fixed interval investment
D. Annuity