1. Which of the following is considered a hybrid organizational form?
Limited liability partnership
2. Which of the following is a principal within the agency relationship?
A company engineer
The board of directors
The CEO of the firm
3. Which of the following presents a summary of the changes in a firm’s balance sheet from the beginning of an accounting period to the end of that accounting period?
The statement of cash flows.
The statement of retained earnings.
The statement of working capital.
The statement of net worth
4. Teakap, Inc., has current assets of $ 1,456,312 and total assets of $4,812,369 for the year ending September 30, 2006. It also has current liabilities of $1,041,012, common equity of $1,500,000, and retained earnings of $1,468,347. How much long-term debt does the firm have?
5. Gateway Corp. has an inventory turnover ratio of 5.6. What is the firm's days's sales in inventory?
6. Your firm has an equity multiplier of 2.47. What is its debt-to-equity ratio?
7. Which of the following is not a method of “benchmarking”?
Utilize the DuPont system to analyze a firm’s performance.
Identify a group of firms that compete with the company being analyzed.
Conduct an industry group analysis
Evaluating a single firm’s performance over time.
8. Jack Robbins is saving for a new car. He needs to have $ 21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar.)