. The value of an asset is based on four characteristics:cash flows, time, risk, and opportunity...

Question

.
The value of an asset is based on four characteristics:cash flows, time, risk, and opportunity costs:but in many situations we can estimate an asset's value by: (Points : 1) ignoring risk, which simplifies the calculation.

assigning our personal value to the asset.

adding a risk premium to the current return on US government bonds.

looking at its market price.

2.
On the typical balance sheet, the right-hand side shows: (Points : 1)

the book value of plant, property, and equipment.

the market value of liabilities.

the accounting value of liabilities and equity.

the market value of common stock

3.
The financial goal of a for-profit business is: (Points : 1)

profit maximization.

owner wealth maximization.

cash flow maximization.

utility maximization.

4.
Why is depreciation expense added back to net income to get a rough estimate of cash flow? (Points : 1)

Depreciation is a negative cost.

Depreciation is a noncash charge against income.

Depreciation is imaginary, so it has no effect on cash flow or profits.

Depreciation is simply an accounting issue, so it should be ignored.

5.
The income statement shows which of the following? (Points : 1)

A company's revenues and profits over some time period.

A company's financial position at a point in time.

The value of inventory.

Accounting results on a cash basis.

6.
Revenue recognition rules state which of the following? (Points : 1)

A sale can only be recognized when cash changes hands.

A sale can only be recognized when the title or ownership changes hands.

It varies depending on the item and the nature of the sales contract.

A sale can only be recognized when the product is received by the buyer.

7.
A key component of a product's value is: (Points : 1)

the accounting profits the product produces.

the depreciation tax shield the product produces.

the cash flows the product produces.

the market share the product commands.

8.
The accounting method you use in your checkbook is best described as: (Points : 1)

cash accounting.

accrual accounting.

deficit reduction.

balance sheet accounting.

9.
In publicly traded corporations the goal of the financial manger would be: (Points : 1)

profit maximization.

manager wealth maximization.

stock price maximization.

shareholder wealth maximization.

10.
In an efficient market most investors earn: (Points : 1)

higher than average returns because of low transaction costs.

above average returns by following buy-and-hold strategies.

average returns because efficiency makes earning higher returns difficult.

returns of over 12% on NYSE stocks.

Robert · Accepted Answer

Answers are highlighted in yellow
1. The value of an asset is based on four characteristics: cash flows, time, risk, and opportunity costs: 
but in many situations we can estimate an asset's value by: (Points : 1)  
ignoring risk, which simplifies the calculation. 
assigning our personal value to the asset. 
adding a risk premium to the current return on US government bonds. 
looking at its market price.
2. On the typical balance sheet, the right-hand side shows: (Points : 1)  
the book value of plant, property, and equipment. 
the market value of liabilities. 
the accounting value of liabilities and equity. 
the market value of common stock
3. The financial goal of a for-profit business is: (Points : 1)  
profit maximization. 
owner wealth maximization. 
cash flow maximization.

. The value of an asset is based on four characteristics:cash flows, time, risk, and opportunity costs:but in many situations we can estimate an asset's value by: (Points : 1) ignoring risk, which...

Answer To: . The value of an asset is based on four characteristics:cash flows, time, risk, and opportunity...

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment