Course Prin Of Finance
Test Quiz 7  
Instructions This quiz consist of 20 multiple choice questions. The first 10 questions cover the material in Chapter 13. The second 10 questions cover the material in Chapter 14. Be sure you are in the correct Chapter when you take the quiz.

Question 1
 For a given accounting period, which of the following is likely to represent primarily variable costs?
  
 Question 2
 The depreciation method currently used for tax purposes today is called the:
  
 Question 3
 The average tax rate on a corporation with $75,000 in income and a tax liability of $15,000 is:
 
 Question 4
 The financial statement that provides a snapshot view of the financial condition of a business at a point in time is the:
Answer    
 
 Question 5
 Of the following forms of business organization, which have the advantage of limited liability but no stockholders?
 
 Question 6
 The U.S. federal government body that regulates the sale and listing of securities on U.S. financial markets is the:
  
 Question 7
 On the balance sheet, total assets minus net fixed assets equals:
 
 Question 8
 Of the following forms of business organization, which have stockholders with limited liability?

 Question 9
 Current liabilities would not include:
 
 Question 10
 The accrued liabilities of a firm are:
 
 Question 11
 If a firm’s sale price per unit decreases, the firm’s operating breakeven point will
 
 Question 12
 The method of evaluating the firm’s performance over time is known as:
  
 Question 13
 _____________ costs are a function of time (not sales) and are generally contractual.
  
 Question 14
 Ratios used to compare different firms at the same point in time belong to a category of analysis called:
 
 Question 15
 _____________ costs are a function of quantity sold, not time.
  
 Question 16
 The extent to which assets are financed by borrowed funds and other liabilities is indicated by:
 
 Question 17
 The equity multiplier is calculated as:
 
 Question 18
 Which one of the following ratios indicates the average number of days that sales are outstanding?
 
 Question 19
 The price/earnings ratio (P/E) is calculated as:
  
 Question 20  The extent to which assets are used to support sales is indicated by which of the following ratios: