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3 years ago

One primary focus of substantive tests in the finance and investment cycle is on:

1 answer:

3 0

This Finance Test is designed to help you assess your knowledge on important finance concepts, terminology definitions, and frequently used calculations. We strongly encourage any students who are planning or are beginning their FMVA certification program to take this test to determine whether you will need to take the prerequisite finance courses including Reading Financial Statements, Introduction to Corporate Finance, and Math for Corporate Finance. This is also a useful resource for employers to examine the technical knowledge of the candidates during a finance interview.

If you pass this test with 80% or above (16 questions or more), it is likely that you have a strong background in finance and are good to go ahead with our core courses!

Finance Test Questions

1. The concept of present value relates to the idea that*

The discount rate is always higher when you invest now than in the future

The discount rate is always higher when you invest in the future than now

The money you have now is worth less today than an identical amount you would receive in the future

The money you have now is worth more today than an identical amount you would receive in the future

2. The formula for calculating future value (FV) is*

FV = PV/(1+r)^n

FV = PV/(1+r)*n

FV = PV x (1+r)^n

FV = PV x (1+r)*n

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Time preference is: a. the purchase of new capital goods. b. a sophisticated IOU that documents who owes how much and when payme

kirill [66]

Answer:

D. the desire to have goods and services sooner rather than later (all other things being equal).

Explanation:

The time preference talks about the placing relative value on goods received at an earlier date compared with receiving that particular goods at a later date. It is the assumption that people prefer a given goods or services be delivered sooner rather than later all things being equal. It occurs when a person focus on having a good sooner rather than later.

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3 years ago

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3 years ago

Manchester Company sells equipment on June 1, 2021, for $222,400 cash. Manchester incurred $1,280 of removal and selling costs o

drek231 [11]

Answer and Explanation:

The journal entries are as follows:

But before that the accumulated depreciation for 3 years is as follows:

Cost $400,000

Less: Residual value $64,000

Depreciable cost $336,000

Divide by Useful life 10

Annual Depreciation $33,600

Accumulated depreciation for 3 years $100,800 ($33,600 × 3 years)

Now the journal entries are as follows:

On June 1, 2021

Depreciation expense $14,000 ($33,600 × 5 months ÷ 12 months)

To Accumulated Depreciation $14,000

(Being depreciation expense is recorded)

On June 1,2021

Accumulated Depreciation $114,800 ($100,800 + $14,000)

Cash $221,120 ($222,400 - $1,280)

Loss on Disposal $64,080

To Equipment $400,000

(Being the disposal of an asset is recorded)

On June 1, 2021

Depreciation expense $14,000 ($33,600 × 5 months ÷ 12 months)

To Accumulated Depreciation $14,000

(Being depreciation expense is recorded)

On June 1,2021

Accumulated Depreciation $114,800 ($100,800 + $14,000)

Loss on Disposal $285,200 ($221,120 + $64,080)

To Equipment $400,000

(Being the disposal of an asset is recorded)

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3 years ago

True or False: Victoria's Secret, with its low-priced holiday discounts, exemplifies a firm pursuing cost-leadership; while Wal-

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Answer:

False.

Explanation:

The Victoria's part is true she is pursuing cost leadership by keeping it's price low although the Walmart's example is not related to differentiation strategy of competitive advantage. Because keeping mix of products is not differentiation, it's not unique.

Porter suggested 4 strategies and he believed that by using one of these strategies companies can gain competitive advantage.

The 4 strategies for competitive advantage:

Cost Focus.
Cost leadership.
Differentiation Focus.
Differentiation Leadership.

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2 years ago

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________ development is a joint approach among those who seek economic growth with "wise resource management, equitable distribu

Mnenie [13.5K]

Answer:

Sustainable

Explanation:

Sustainable development in simple terms refers to the development which can be sustained or carried forward for a long period of time.

It refers to satisfying and meeting the needs of the current generation without jeopardizing the needs and resource availability for the future generations.

Economic development refers to the rise in per capita income while sustainable development incorporates economic as well as human development.

Such development aims at judicious usage of resources , equitable distribution of resources and reduction in wastage.

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2 years ago