This document provides a 15 question practice quiz for the American Public University System FINC 600 Week 7 course. The quiz covers topics in corporate finance including liquidity and leverage ratios, calculating ratios like the current and asset turnover ratios from financial data, and definitions of terms like networking capital, cash budgeting, and internal growth rate. Answers are provided for self-grading of the quiz questions.

1. American Public University System FINC
600 Week 7 Practice Quiz
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FINC 600 Week 7 Practice Quiz Corporate Finance
Question1
Assetsare listedonthe balance sheetinorderof:
I) Decreasingliquidity
II) Decreasingsize
III) Increasingsize
IV) Relative life
A.I only
B.IIIand IV only
C.II only
D.IV only

2. Question2
The difference betweenTotal Assetsof afirmandits Total Liabilitiesiscalled.
A.Networkingcapital
B.Netcurrentassets
C.Networth
D.None of the above
Question3
The difference betweenCurrentAssetsof afirmand itsCurrentLiabilitiesiscalled.
A.Networth
B.Networkingcapital
C.Gross workingcapital
D.None of the above

3. Question4
Whichof the followingisanexample of leverage ratios?
A.Debt-Equityratio
B.Quickratio
C.Payoutratio
D.Returnon equity
Question5
Whichof the followingisanexample of liquidityratios?
A.Timesinterestearned(TIE)
B.P/E ratio
C.Returnon equity
D.Quickratio
Question6
Giventhe followingdata:

4. Currentassets= 500
Currentliabilities=250
Inventory=200
Accountreceivables=200
Calculate the currentratio:
A.2.0
B.1.0
C.1.5
D.None of the above
Question7
Giventhe followingdata:
Sales= 3200
Cost of goodssold= 1600
Average total assets= 1600
Average inventory=200
Calculate the assetturnoverratio:

5. A.2.0
B.0.9375
C.1.33
D.None of the above
Question8
Efficiencyratiosindicate:
I) How productivelyisthe firmutilizingitsassets.
II) How liquidisthe firm.
III) How profitable isthe firm.
IV) Howhighlyisthe firmvaluedbyinvestors.
A.I only
B.II only
C.IIIonly
D.IIIand IV only

6. Question9
Profitabilityratiosindicate:
I) How productivelyisthe firmutilizingitsassets.
II) How liquidisthe firm.
III) How profitable isthe firm.
IV) Howhighlyisthe firmvaluedbythe investors.
A.I only
B.II only
C.IIIonly
D.IIIand IV only
Question10
Giventhe followingassets;
I) Long-termassets
II) Inventories
III) Receivables
IV) Marketable securities

7. Whichis the leastliquidof these assets?
A.I
B.II
C.III
D.IV
Question11
Giventhe followingdata:
Total currentassets= $852
Total currentliabilities=$406
Long-termdebt= $442
Calculate the networkingcapital.
A.$446
B.$852
C.$410

8. D.None of the above
Question12
The cash budgetisthe primaryshort-termfinancialplanningtool.The keyreasonsacashbudgetis
createdare:
I) To estimate yourinvestmentinassets
II) To estimate the size andtimingof yournew cash flows
III) To prepare forpotential financingneeds
A.I only
B.II andIII only
C.II only
D.IIIonly
Question13
Networkingcapital isdefinedas:
A. The current assetsina business
B. The difference betweencurrentassetsandcurrentliabilities
C. The presentvalue of all short-termcashflows

9. D. The difference betweenall assetsandliabilities
Question14
Cash inflowincashbudgetingcomesmainlyfrom:
A.Collectiononaccountsreceivable
B.Short-termdebt
C.Issue of securities
D.None of the above
Question15
The firm'sinternal growthrate is definedas:
A. retainedearnings/netincome
B. retainedearnings/netassets
C. retainedearnings/total assets
D. none of the above
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