MBF805 Email: bbcnoun@gmail.com Whatsapp: 08131667008 Which of the following is an ideal measure of liquidity? Answer: acid test The can be used to make comparism between firms in the same industry. Answer: ratio analysis A ratio such as can influence the market price of a companyVs stock. Answer: earning ratio The statement that incorportaes information about the firmYs operations over time is Answer: income statement Goodwill is termed as balance sheet. in a firmVs Answer: fixed asset At the time of issuance, the issuer of a convertible security normally establishes a conversion price which is the current market price of the firmYs stock Answer: above Fictitious asset is also called firmVs financial report. Answer: intangible asset Which of the following guide the construction of financial statement? Answer: accounting principles is the weighted average of the costs of the different components of financing used by a firm to fund its financial requirements Answer: cost of capital One of the following is not a characteristics that is determined by a firmVs dividend policy Answer: financial exposure For an investment to be worthwhile the expected must be greater than the cost of capital Answer: return on capital The statement prepared for assessing future operations in business is called . Answer: proforma statement is the risk associated with the uncertainty of a companyVs ability to manage the financing of its operations Answer: financial risk are securities that combine the features of two different types of financial assets Answer: hybrids The cash flow left over after taxes, preference dividends cash flows to debt holders net capital expenditures and working capital needs is ? Answer: cash flows to equity Instruments linked to other existing securities whose value depends on the value of a linked security are known as Answer: derivatives The is a measure of leverage in the results of operations of a firm. Answer: debt to equity is a bond or preferred shares that has a feature of allowing the investor to exchange instruments for a predetermined number of common shares Answer: convertible securities A market known for trading of securities that have already been issued is known as Answer: secondary market The are related to assessment regarding information provided in financial statement. Answer: ratios Email: bbcnoun@gmail.com Whatsapp: 08131667008