Stockholders' Equity (Net Worth) is affected by all of the following EXCEPT:

Stockholders' Equity (Net Worth) is affected by all of the following EXCEPT:A. declaration of a cash dividendB. the purchase of Treasury stockC. the issuance...

A corporation buys furniture and fixtures, paying cash. Which of the following choices are affected?

A corporation buys furniture and fixtures, paying cash. Which of the following choices are affected?I Current AssetsII Current LiabilitiesIII Net WorthIV...

A corporation would repurchase its debt for all of the following reasons EXCEPT to:

A corporation would repurchase its debt for all of the following reasons EXCEPT to:A. refinance at lower interest ratesB. increase its capitalizationC....

A corporation issues $100,000,000 of 10% convertible debentures, convertible at $50. Upon issuance, which of the following are affected?

A corporation issues $100,000,000 of 10% convertible debentures, convertible at $50. Upon issuance, which of the following are affected?I Total AssetsII...

A corporation is preparing a registration statement for a new issue offering consisting of 300,000 new shares and 200,000 existing shares held by officers. The Public Offering Price is $30 per share. The spread taken by the underwriters is $2 per share. Which of the following will be changed as a result of the offering?

A corporation is preparing a registration statement for a new issue offering consisting of 300,000 new shares and 200,000 existing shares held by officers....

XYZ Company has 100,000,000 authorized common shares. 25,000,000 shares have been issued and another 10,000,000 shares are currently in registration. The sale of the 10,000,000 shares will result in all of the following EXCEPT a(n)

XYZ Company has 100,000,000 authorized common shares. 25,000,000 shares have been issued and another 10,000,000 shares are currently in registration....

A corporation issues new common stock. Which of the following are affected?

A corporation issues new common stock. Which of the following are affected?I Current AssetsII Total LiabilitiesIII Net WorthIV Retained EarningsAnswer: I...

A corporate issuer declares a reverse stock split. After the split is effected, which of the following statements are TRUE?

A corporate issuer declares a reverse stock split. After the split is effected, which of the following statements are TRUE?I The market price of the corporation's...

ABC Corporation splits its stock 3:1. As a result of the split, which of the following will occur?

ABC Corporation splits its stock 3:1. As a result of the split, which of the following will occur?I The earnings per share of ABC stock stays the sameII...

A corporation issues a stock dividend. Which of the following statements are TRUE?

A corporation issues a stock dividend. Which of the following statements are TRUE?I Par value per common share will decreaseII Par value per common share...

A corporation has previously declared a cash dividend. When the dividend is actually paid, which of the following choices are affected?

A corporation has previously declared a cash dividend. When the dividend is actually paid, which of the following choices are affected?I Current AssetsII...

A company has reported operating income of $5,000,000. The bond interest expense for the year is $500,000 and principal repayments on bonds totaled $1,500,000. The company's debt service coverage ratio is:

A company has reported operating income of $5,000,000. The bond interest expense for the year is $500,000 and principal repayments on bonds totaled $1,500,000....

Which of the following will affect the reported net income per share of a corporation?

Which of the following will affect the reported net income per share of a corporation?I Decrease in the number of common shares outstandingII Change in...

A corporation has an operating margin of profit of 9.50%. This means that for every $9.50 of profit, the company had $100 of:

A corporation has an operating margin of profit of 9.50%. This means that for every $9.50 of profit, the company had $100 of:A. expensesB. revenuesC....

Bond interest expense of a corporation is deductible:

Bond interest expense of a corporation is deductible:I before operating expensesII after operating expensesIII before taxesIV after taxesAnswer: II...

Which item would NOT be found on a corporation's income statement?

Which item would NOT be found on a corporation's income statement?A. InterestB. DividendsC. RevenueD. ExpensesAnswer: B: Divide...

Which of the following are components of total long term capital of a corporation?

Which of the following are components of total long term capital of a corporation?I Common at ParII Capital in Excess of ParIII Retained EarningsIV Preferred...

All of the following terms are synonymous EXCEPT:

All of the following terms are synonymous EXCEPT:A. capital in excess of parB. capital surplusC. additional paid in capitalD. retained earningsAnswer: D:...

Accelerated depreciation deductions:

Accelerated depreciation deductions:I increase reported income in early yearsII decrease reported income in early yearsIII increase reported expenses...

All of the following are methods of depreciation EXCEPT:

All of the following are methods of depreciation EXCEPT:A. Double Declining BalanceB. First In First OutC. MACRSD. Straight LineAnswer: B: First...

Which ratio is the least stringent test of liquidity?

Which ratio is the least stringent test of liquidity?A. Cash assets ratioB. Quick ratioC. Acid test ratioD. Current ratioAnswer: D: Current Ra...

What is DEF Corporation's Quick Ratio?

What is DEF Corporation's Quick Ratio?A. .39:1B. 1.1:1C. 2:1D. 7.90:1Answer: B: 1....

What is PDQ Corporation's Current Ratio?

PDQ Current Assets = 178,000,000PDQ Current Liabilities = 97,000,000What is PDQ Corporation's Current Ratio?A. .67:1B. 1:1C. 1.84:1D. 6.11:1Answer: C:...

Current assets minus current liabilities equals:

Current assets minus current liabilities equals:A. net worthB. net working capitalC. book valueD. net tangible assetsAnswer: B: Net working capi...

All assets minus all liabilities equals:

All assets minus all liabilities equals:A. net worthB. net working capitalC. book valueD. net tangible assetsAnswer: A: Net Wo...

What accounting method is used for bookkeeping purposes by publicly traded companies?

What accounting method is used for bookkeeping purposes by publicly traded companies?A. AccrualB. AmortizationC. AccretionD. ActuarialAnswer: A:...

If factory inventory levels are increasing, which of the following are TRUE?

If factory inventory levels are increasing, which of the following are TRUE?I Economic conditions are improvingII Economic conditions are deterioratingIII...

An increasing Consumer Confidence Index indicates that:

An increasing Consumer Confidence Index indicates that:I consumers are confident in the overall economyII consumers are not confident in the overall economyIII...

Which of the following statements are TRUE regarding the "help wanted" advertising index?

Which of the following statements are TRUE regarding the "help wanted" advertising index?I If the number of advertisements is increasing, the economy...

Which of the following is a lagging economic indicator?

Which of the following is a lagging economic indicator?A. Index of Industrial ProductionB. Reported corporate profitsC. Standard and Poor's 500 IndexD....

Which is considered to be a coincident economic indicator?

Which is considered to be a coincident economic indicator?A. Stock market pricesB. Corporate profitsC. Index of industrial productionD. Orders for machineryAnswer: C....

Which of the following is a leading economic indicator?

Which of the following is a leading economic indicator?A. Personal IncomeB. Employment DurationC. Labor Cost Per Manufactured UnitD. Contracts for plant...

The broadest monetary measure is:

The broadest monetary measure is:A. M-1B. M-2C. M-3D. LAnswer: D....

If the Federal Reserve Board tightens credit via open market operations, which of the following will be the slowest to respond?

If the Federal Reserve Board tightens credit via open market operations, which of the following will be the slowest to respond?I Credit card interest...

Which of the following statements are TRUE about the Federal Funds rate?

Which of the following statements are TRUE about the Federal Funds rate?I The Federal Funds rate is set by the Federal Reserve and is the rate at which...

Which of the following interest rates is the highest?

Which of the following interest rates is the highest?A. Discount RateB. Federal Funds RateC. Broker Loan RateD. Prime RateAnswer: D. Prime R...

The interest rate charged from commercial banks to their best customers is the:

The interest rate charged from commercial banks to their best customers is the:A. Discount RateB. Federal Funds RateC. Broker Loan RateD. Prime RateAnswer: D....

The term "hawkish" monetary policy means that:

The term "hawkish" monetary policy means that:A. the Federal Reserve is loosening credit by lowering interest ratesB. the Federal Reserve is tightening...

What can the Federal Reserve do to stimulate the economy?

What can the Federal Reserve do to stimulate the economy?A. Buy Treasury securities from banksB. Sell Treasury securities to banksC. Increase the reserve...

During a period of inflation, the Federal Reserve would increase the:

During a period of inflation, the Federal Reserve would increase the:A. prime rateB. broker loan rateC. call loan rateD. discount rateAnswer: D....

Which of the following actions by the Federal Reserve will increase interest rates?

Which of the following actions by the Federal Reserve will increase interest rates?I Purchases of securities as directed by the FOMCII Sales of securities...

Open market operations of the Federal Reserve Board cause direct changes in:

Open market operations of the Federal Reserve Board cause direct changes in:A. M1 levelsB. velocity of moneyC. dollar exchange rateD. short term interest...

The use of which tool of the Federal Reserve has the biggest impact on money supply levels?

The use of which tool of the Federal Reserve has the biggest impact on money supply levels?A. Open market operationsB. Discount rateC. Reserve requirementsD....

Which tool of the Federal Reserve is used most frequently?

Which tool of the Federal Reserve is used most frequently?A. Open market operationsB. Discount rateC. Reserve requirementsD. Margin on securitiesAnswer: A....

Which tool would be used by the Federal Reserve to control inflation?

Which tool would be used by the Federal Reserve to control inflation?A. Adjusting tax ratesB. Adjusting the level of government spendingC. Adjusting the...

The Federal Reserve will lend funds at the discount rate to:

The Federal Reserve will lend funds at the discount rate to:A. savings and loansB. commercial banksC. investment banksD. insurance companiesAnswer: B....

Inflation has been running at the annualized rate of 5%. You have just received a distribution from a mutual fund investment that has increased by 5%. Your purchasing power has:

Inflation has been running at the annualized rate of 5%. You have just received a distribution from a mutual fund investment that has increased by 5%....

In a period of deflation, which of the following statements about issuers of fixed income securities are TRUE?

In a period of deflation, which of the following statements about issuers of fixed income securities are TRUE?I Issuers are more likely to sell fixed...

In a deflationary period, which of the following statements are TRUE?

In a deflationary period, which of the following statements are TRUE?I Equity securities are a defensive investmentII Equity securities are not a defensive...

If the rate of inflation as measured by the Consumer Price Index rises greatly, then which of the following is likely to happen?

If the rate of inflation as measured by the Consumer Price Index rises greatly, then which of the following is likely to happen?I Interest rates will...

What is subtracted to find the real interest rate?

What is subtracted to find the real interest rate?A. The inflation rateB. The deflation rateC. The discount rateD. The prime rateAnswer: A. The inflation...

Under Supply Side Theory, which of the following will stimulate the economy?

Under Supply Side Theory, which of the following will stimulate the economy?I Increased government spendingII Decreased government spendingIII Tax rate...

Which economic theory postulates that production and economic growth are stimulated by lower interest rate levels, and can be managed by Federal Reserve actions?

Which economic theory postulates that production and economic growth are stimulated by lower interest rate levels, and can be managed by Federal Reserve...

The economic theory that postulates that production and economic growth are stimulated by increased government spending and transfer payments is:

The economic theory that postulates that production and economic growth are stimulated by increased government spending and transfer payments is:A. Supply...

Monetary policy is set by:

Monetary policy is set by:A. Supreme Court decisionsB. Congressional actionC. Presidential edictD. Federal Reserve actionAnswer: D. Federal Reserve...

Fiscal policy is set by:

Fiscal policy is set by:A. Supreme Court decisionsB. Congressional actionC. Presidential edictD. Federal Reserve actionAnswer: B. Congressional ...

To slow down economic growth using Fiscal Policy, which of the following actions could be taken?

To slow down economic growth using Fiscal Policy, which of the following actions could be taken?I Tax rates could be reducedII Tax rates could be increasedIII...

Fiscal policy encompasses all of the following EXCEPT:

Fiscal policy encompasses all of the following EXCEPT:A. government spendingB. social security payment levelsC. tax policyD. monetary policyAnswer: D....

During which phase of the economic cycle would one most likely find monetary "deflation" starting to occur?

During which phase of the economic cycle would one most likely find monetary "deflation" starting to occur?A. ExpansionB. ProsperityC. RecessionD. RecoveryAnswer: C....

During prolonged periods of economic expansion all of the following will occur EXCEPT:

During prolonged periods of economic expansion all of the following will occur EXCEPT:A. interest rates can be expected to riseB. the Federal Reserve...

Arrange the following in the usual order of the economic cycle:

Arrange the following in the usual order of the economic cycle:I ProsperityII ExpansionIII RecessionIV RecoveryAnswer: II, I, III,...

If a country is exporting more, then than country's:

If a country is exporting more, then than country's:A. GDP is increasingB. GDP is decreasingC. Inflation rate is increasingD. Inflation rate is decreasingAnswer: A....

Gross Domestic Product (GDP) consists of all of the following EXCEPT:

Gross Domestic Product (GDP) consists of all of the following EXCEPT:A. Consumer spendingB. U.S. Government spendingC. Foreign Government spendingD. Fixed...

A customer buys $20,000 of ABC stock in March of 20XX. On December 31, 20XX, the stock is valued at $16,000. The customer will be able to deduct how much on this year's tax return?

A customer buys $20,000 of ABC stock in March of 20XX. On December 31, 20XX, the stock is valued at $16,000. The customer will be able to deduct how much...

In the same year, a customer has $14,000 of long-term capital losses on stock positions and $4,000 of short-term capital gains on options positions. Which statement is TRUE?

In the same year, a customer has $14,000 of long-term capital losses on stock positions and $4,000 of short-term capital gains on options positions. Which...

A customer in the 28% tax bracket has $4,000 of capital gains and $12,000 of capital losses. How much unused loss is carried forward to the next tax year?

A customer in the 28% tax bracket has $4,000 of capital gains and $12,000 of capital losses. How much unused loss is carried forward to the next tax year?A....

A customer has $8,000 of capital losses and $3,000 of capital gains in a tax year. On that year's tax return, the investor has a(n):

A customer has $8,000 of capital losses and $3,000 of capital gains in a tax year. On that year's tax return, the investor has a(n):A. $3,000 capital...

Which statement is TRUE about taxation of capital gains?

Which statement is TRUE about taxation of capital gains?A. Short term capital gains are taxed at higher rates than long term capital gainsB. Short term...

Which of the following statements are TRUE about capital gains taxes for investors who are not extremely high earners?

Which of the following statements are TRUE about capital gains taxes for investors who are not extremely high earners?I The maximum tax rate on a short...

Which of the following securities transactions would result in a long term capital gain?

Which of the following securities transactions would result in a long term capital gain?I Purchase 100 shares of ABC stock at $50 on January 2, 2018;...

Which statements are TRUE regarding the taxation of capital gains?

Which statements are TRUE regarding the taxation of capital gains?I A capital gain is considered to be short term if a position is liquidated at a profit...

For investors who are not extremely high earners, the maximum tax rate on cash dividends received is:

For investors who are not extremely high earners, the maximum tax rate on cash dividends received is:A. 15%B. 25%C. 35%D. 50%Answer: A. ...

All of the following items are included as deductible passive losses on the income tax returns of limited partnership investors EXCEPT:

All of the following items are included as deductible passive losses on the income tax returns of limited partnership investors EXCEPT:A. depletion allowancesB....

A customer has invested in a real estate business that is being managed by a third party. Any income from the investment would be characterized for tax purposes as:

A customer has invested in a real estate business that is being managed by a third party. Any income from the investment would be characterized for tax...

Which of the following would be defined as "portfolio income" under IRS regulations?

Which of the following would be defined as "portfolio income" under IRS regulations?A. Long term capital gainsB. Alimony paymentsC. Royalty paymentsD....

All of the following would be taxable at "earned income" rates under IRS regulations EXCEPT:

All of the following would be taxable at "earned income" rates under IRS regulations EXCEPT:A. Social Security paymentsB. Alimony paymentsC. Royalty paymentsD....

Under Internal Revenue Code guidelines, a royalty received from writing a best selling diet book is defined as which type of income?

Under Internal Revenue Code guidelines, a royalty received from writing a best selling diet book is defined as which type of income?A. passiveB. investmentC....

Which of the following indexes is the broadest measure of the market?

Which of the following indexes is the broadest measure of the market?A. Value Line IndexB. New York Stock Exchange Composite IndexC. Wilshire IndexD....

Which index is the narrowest measure of the market?

Which index is the narrowest measure of the market?A. Wilshire IndexB. Value Line IndexC. NYSE Composite IndexD. Dow Jones Industrial AverageAnswer: D....

Based on the information presented for both days, a technical analyst would conclude that the market:

Based on the information presented for both days, a technical analyst would conclude that the market:A. is in a consolidation phaseB. breadth indicates...

The largest component of the Standard and Poor's 500 Average is the:

The largest component of the Standard and Poor's 500 Average is the:A. utilitiesB. technologyC. consumer staplesD. industrialsAnswer: B. Technol...

A customer viewing virtual trading floor information on the NYSE Website notices that he can see most, but not all, of the stocks included in the Dow Jones Industrial Average, trading on the floor. The customer asks his registered representative why this is the case. The customer should be told that:

A customer viewing virtual trading floor information on the NYSE Website notices that he can see most, but not all, of the stocks included in the Dow...

Which of the following economic events would have a positive long term impact on common stock prices?

Which of the following economic events would have a positive long term impact on common stock prices?I Falling interest ratesII Falling capital gains...

An investor holds an international bond fund. Regarding the performance of the fund, which of the following statements are TRUE?

An investor holds an international bond fund. Regarding the performance of the fund, which of the following statements are TRUE?I If the foreign currency...

During the past year, foreign investment in the United States has been increasing. The likely cause for this is:

During the past year, foreign investment in the United States has been increasing. The likely cause for this is:A. the United States has been running...

If the dollar falls against foreign currencies, all of the following statements are true EXCEPT:

If the dollar falls against foreign currencies, all of the following statements are true EXCEPT:A. U.S. goods are cheaper to foreign countriesB. U.S....

If the real Gross Domestic Product of the G-20 countries is growing at a faster rate than real Gross Domestic Product growth in the United States, then the value of the U.S. dollar can be expected to:

If the real Gross Domestic Product of the G-20 countries is growing at a faster rate than real Gross Domestic Product growth in the United States, then...

If a foreign government wishes to stabilize its currency because it has been falling against the U.S. Dollar, the government would:

If a foreign government wishes to stabilize its currency because it has been falling against the U.S. Dollar, the government would:A. buy its own currencyB....

Speculators in foreign currencies would be subject to all of the following risks EXCEPT:

Speculators in foreign currencies would be subject to all of the following risks EXCEPT:A. political riskB. market riskC. interest rate riskD. exchange...

A foreign currency trade that settles either one or two business days after trade date is a:

A foreign currency trade that settles either one or two business days after trade date is a:A. cash settlementB. seller's option settlementC. forward...

Trading in the Interbank market will affect all of the following directly EXCEPT:

Trading in the Interbank market will affect all of the following directly EXCEPT:A. foreign currency prices in terms of U.S. dollarsB. American Depositary...

Trading in the Interbank market will DIRECTLY affect:

Trading in the Interbank market will DIRECTLY affect:I American Depositary Receipt prices in terms of U.S. dollarsII Foreign Currency prices in terms...

Which of the following statements are TRUE about the interbank market?

Which of the following statements are TRUE about the interbank market?I Foreign currency values are determined in this marketII The market is centralizedIII...

Transactions in the interbank market cause direct movements in the prices of:

Transactions in the interbank market cause direct movements in the prices of:A. currenciesB. currency optionsC. equitiesD. equity optionsAnswer: A....

If the United States balance of payments goes from a deficit to a surplus position, the value of the U.S. dollar should:

If the United States balance of payments goes from a deficit to a surplus position, the value of the U.S. dollar should:A. appreciateB. depreciateC. fluctuateD....

A U.S. balance of payments deficit would be narrowed by which of the following?

A U.S. balance of payments deficit would be narrowed by which of the following?A. Increased levels of U.S. importsB. Decreased sales of U.S. securities...