Business: Time Value of Money and Income Statement
Name___________________________________
1) Which of the following organization forms accounts for the greatest number of firms?
A) Limited Partnership B) "S" Corporation
C) "C" Corporation D) Sole Proprietorship
Section: 1.1 The Four Types of Firms
2) The person charged with running the corporation by instituting the rules and policies set by the board of directors is called
A) the Company President. B) the Chief Operating Officer.
C) the Chief Executive Officer. D) the Chief Financial Officer.
Section: 1.2 Ownership Versus Control of Corporations
3) You overhear your manager saying that she plans to book an Oceanview room on her upcoming trip to Miami for a meeting. You know that the …show more content…
12) If Luther 's accounts receivable were $55.5 million in 2009, then calculate Luther 's accounts receivable days for 2009.
Section: 2.5 Income Statement Analysis
Use the information for the question(s) below.
In November 2009, Perrigo Co. (PRGO) had a share price of $39.20. They had 91.33 million shares outstanding, a markettobook ratio of 3.76. In addition, PRGO had $845.01 million in outstanding debt, $163.82 million in net income, and cash of $257.09 million.
13) Calculate Perrigo 's return on equity (ROE).
Section: 2.5 Income Statement Analysis
14) If Alex Corporation takes out a bank loan to purchase a machine used in production and everything else stays the same, its equity multiplier will ________, and its ROE will ________.
A) increase; decrease B) decrease; increase C) increase; increase D) decrease; decrease
Section: 2.5 Income Statement Analysis
15) Which of the following is not a section on the cash flow statement?
A) Financing activities B) Investing activities
C) Operating activities D) Income generating activities
Section: 2.6 The Statement of Cash Flows
16) In addition to the balance sheet, income statement, and the statement of cash flows, a firm 's complete financial statements will include all of the following except:
A) Notes to the financial statements
B) Securities and Exchange Commission 's (SEC)

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