Question

. The Sarbanes-Oxley Act requires public companies to ensure which of the following individuals have considerable experience applying generally accepted accounting principles (GAAP) for financial statements. A. External auditors B. Internal auditors C. Chief financial officers D. Corporate boards' audit committees 5. Which ratio measures a firm's ability to pay short-term obligations with its available cash and market securities? A. Cash B. Current C. Internal-growth D. Quick or acid test 5. Which of these statements is true? A. A low inventory turnover ratio or a low days' sales in inventory is a sign of good inventory management. B. A high inventory turnover ratio or a low days' sales in inventory is a sign of good inventory management. C. A low inventory turnover ratio or a high days' sales in inventory is a sign of good inventory management. D. A high inventory turnover ratio or a high days' sales in inventory is a sign of good inventory management. 6. Which of these ratios show the combined effects of liquidity, asset management, and debt management on the overall operation results of the firm? A. Liquidity B. Coverage C. Financial D. Profitability 7. Many people who want to start investing for their future want to start today, which implies an annuity stream that is paid at the beginning of the period. Beginning-of-period cash flows are referred to as: A. ordinary annuities. B. annuities due. C. perpetuities. D. present values. 8. Compounding monthly versus annually causes the interest rate to be effectively higher, and thus the future value: A. grows. B. decreases. C. is independent of the monthly compounding. D. is affected only if the calculation involves an annuity due. 9. People refinance their home mortgages: A. when rates fall. B. when rates rise. C. when rates fall and rise. D. whenever they need to, independent of rates.

Answer 1

Answer:

3. Option(D)

The Sarbanes-Oxley Act requires public companies to ensure Corporate boards' audit committees have considerable experience applying generally accepted accounting principles (GAAP) for financial statements.

4. Option (A)

"Cash ratio" measures a firm's ability to pay short-term obligations with its available cash and market securities.

5.  Option(B)

The true statement is B. A high inventory turnover ratio or a low days' sales in inventory is a sign of good inventory management.

6. Option(D)

"Profitability" ratios show the combined effects of liquidity, asset management, and debt management on the overall operation results of the firm.

7. Option(B)

Many people who want to start investing for their future want to start today, which implies an annuity stream that is paid at the beginning of the period. Beginning-of-period cash flows are referred to as "Annuities due".

8. Option (A)

Compounding monthly versus annually causes the interest rate to be effectively higher, and thus the future value "Grows".

9.  Option (A)

People refinance their home mortgages "When rates fall".