Description

This is NOT an essay. Please complete the quiz questions listed below. Most questions are open ended and there are a few multiple choice. I have attached a word document to be used for your convenience No references are needed. However, I have included a list of the text resources that should be used to find the answers.

1. Which is the correct formula to calculate current ratios?
   a. Total cash divided by current liabilities
   b. Current liabilities divided by current assets
   c. Current assets divided by current liabilities
   d. Current dividends divided by current liabilities
2. Describe the funding that local credit unions may offer in low-income situations.
3. How do financial ratios help to compare a firm’s financial data?
4. What is the difference between free cash flows and financing cash flows?
5. Current assets include cash, accounts receivable and __.
   a. accounts payable
   b. debt
   c. inventories
   d. long-term assets
6. Why is it important to have risk tolerance when seeking additional funding?
7. Briefly describe what a process costing system is, when it is used and how it is calculated.
8. What is times interest earned to a firm and how is it analyzed?
9. __ focuses on the costs of activities as the building blocks for allocating indirect costs to products and services.
   a. Activity-based costing (ABC)
   b. Allocation-based management (ABM)
   c. Performance-based costing (PBC)
   d. Quality-based management (QBM)
10. Equity financing occurs when the lender __.
    a. mandates repayment of the loan
    b. declines voting rights on management decisions
    c. receives a percentage of profits in the company in return for the loan
    d. receives a percentage of ownership in the company in return for the loan
11. What is price variance and what is the formula to calculate price variance?
12. How does a manager use differential costs in making a decision whether or not to outsource?
13. Describe the makeup of an income statement.
14. Explain the reasoning for relevant information when analyzing costs.
15. What is debt ratio and how is it calculated?
16. What are three advantages for an entrepreneur of equity financing over debt financing?
17. What is the difference between a target-pricing approach and cost-plus pricing approach? Include the formula for each.
18. What is an asset utilization ratio to a firm and how is it analyzed?

APA format and references not needed at this time. However, I have listed the text resources from the class and topics below:

1. Keown, Foundations of Finance, Pearson eText, 9/e
2. Mariotti, Entrepreneurship: Starting and Operating A Small Business, Pearson eText, 4/e
3. Miller-Nobles, Horngren’s Accounting, Pearson eText, 11/e]