301 Exam Correct Questions And Answers!

Which one of the following actions by a financial manager is most apt to create an agency problem? {Ans: Increasing current profits when doing so lowers the value of the company's equity}Gem Jewelers has current assets of $687,600, total assets of $1,711,000, net working capital of $223,700, and long-term debt of $450,000. What is the debt-equity ratio? {Ans: Current liabilities = $687,600 − 223,700 Current liabilities = $463,900 Total equity = $1,711,000 − 463,900 − 450,000 Total equity = $797,100 Debt-equity ratio = ($463,900 + 450,000)/$797,100 Debt-equity ratio= 1.15}Controller {Ans: oversees taxes, cost accounting, financial accounting, and data processing}The treasurer of a corporation generally reports directly to the: {Ans: vice president of finance}Williamsburg Market is an all-equity firm that has net income of $96,200, depreciation expense of $6,300, and an increase in net working capital of $2,800. What is the amount of the net cash from operating activity? {Ans: Net cash from operating activity = $96,200 + 6,300 − 2,800 Net cash from operating activity = $99,700}Return on Assets {Ans: =Net Income / Total Assets How efficient it is at using its assets to generate earnings}Which one of the following statements concerning corporate income