FINC400 I004 quiz 3

Question
FINC400 I004 Sum 13

The quiz is accessible once and is available for the duration of 1.5-hours. Please do not exit from the quiz unless it has been completed, as it will not be accessible again.

Don't use plagiarized sources. Get Your Custom Essay on
FINC400 I004 quiz 3
Just from $13/Page
Order Essay

Question 1 of 25

4.0 Points

A lower price for the firm’s product will reduce the firm’s breakeven point.

A. True

B. False

uestion 2 of 25

4.0 Points

(point) Profit is generally adequate to finance significant growth.

A. True

B. False

Question 5 of 25

4.0 Points

The degree of combined leverage is the sum of the degree of operating leverage and the degree of financial leverage.

A. True

B. False

Question 6 of 25

4.0 Points

If fixed costs rise while other variables stay constant

A.the breakeven point rises.

B.degree of operating leverage increases.

C.total profit declines.

D.all of these

Question 7 of 25

4.0 Points

Operating leverage emphasizes the impact of using fixed assets in the business.

A. True

B. False

Question 8 of 25

4.0 Points

(point) In financial statements, the number of units shown in cost of goods sold as compared to the number of the units actually produced

A.is higher.

B.is lower.

C.is the same.

D.can be either higher or lower.

Question 9 of 25

4.0 Points

The contribution margin is equal to price per unit minus total costs per unit.

A. True

B. False

Question 10 of 25

4.0 Points

(point) Which of the following is most likely to increase the final number for notes payable in the pro forma balance sheet?

A.decrease in inventory.

B.increase in retained earnings.

C.decrease in accounts payable.

D.decrease in accounts receivable.

estion 11 of 25

4.0 Points

An increase in sales and profits generates the necessary cash required for economic growth.

A. True

B. False

Question 12 of 25

4.0 Points

The percent-of-sales forecast is likely to be most accurate when used with cyclical companies.

A. True

B. False

Question 13 of 25

4.0 Points

Pro forma financial statements are

A.the most comprehensive means of financial forecasting.

B.often required by prospective creditors.

C.projections of financial statements for a future period.

D.all of these.

Question 14 of 25

4.0 Points

(point) When the cost of raw materials is increasing, FIFO accounting

A.yields higher ending inventory values than LIFO.

B.produces higher unit sales than using LIFO.

C.yields higher cost of goods sold than LIFO.

D.All of these.

Question 15 of 25

4.0 Points

(point) If sales volume exceeds the break-even point, the firm will experience

A.an operating loss.

B.an operating profit.

C.an increase in plant and equipment.

D.an increase in stock price.

Question 16 of 25

4.0 Points

The value of ending inventory should be equal to beginning inventory plus total production costs minus cost of goods sold.

A. True

B. False

Question 17 of 25

4.0 Points

(point) Leverage works best when volume is increasing.

A. True

B. False

Question 18 of 25

4.0 Points

(point) The percent-of-sales method would be more accurate under a steady sales assumption than cyclical sales.

A. True

B. False

Question 19 of 25

4.0 Points

If the price per unit decreases because of competition but the cost structure remains the same

A.the breakeven point rises.

B.the degree of combined leverage declines.

C.the degree of financial leverage declines.

D.All of these

Question 20 of 25

4.0 Points

Sales (100,000 units)

$ 1,000,000

Variable costs

300,000

Contribution margin

700,000

Fixed manufacturing costs

200,000

Operating income

500,000

Interest

75,000

Earnings before taxes

425,000

Taxes (30%)

127,500

Net Income

$ 297,500

Refer to the figure above. The Degree of Operating Leverage is

A.1.40x

B.1.56x

C.3.33x

D.2.22x

Question 21 of 25

4.0 Points

(point) The percent-of-sales method for financial forecasting assumes that balance sheet accounts maintain a constant relationship to sales.

A. True

B. False

Question 22 of 25

4.0 Points

(point) As the contribution margin rises, the breakeven point goes down.

A. True

B. False

Question 23 of 25

4.0 Points

(point) In the percent-of-sales method, an increase in dividends

A.will increase required new funds.

B.will decrease required new funds.

C.has no effect on required new funds.

D.more information is needed.

uestion 24 of 25

4.0 Points

Which of the following is not true about leverage?

A.operating leverage influences the top half of the income statement, determining EBIT.

B.financial leverage deals with the bottom half of the income statement, determining EPS

C.combined leverage utilizes the entire income statement, showing the impact of change in volume on EBIT.

D.none of these

Question 25 of 25

4.0 Points

The finance department should work independently without the input of other departments because there may be significant biases when creating proformas.

A. True

B. False

My Essay Gram
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Live Chat+1(405) 367-3611Email