I. TRUE OR FALSE (10 items) Write T if the statement is correct, otherwise write F. 1. Debt Ratio is equal to Total Assets over Total Liabilities. 2. The impact that the decisions of a management team have on a company is called Lega Risk. 3. Current assets consist of assets that should be converted to cash within one (1) year. 4. In risk, the greater the variability, the greater the risk. 5. The cash flow statement, or statement of cash flow is consisted of three components. 6. A return can only be expressed in percentages. 7. Working Capital is equal to Current Assets minus Current Liabilities. 8. The impact of changes in social norms, movements, and unrest is social risk. 9. Another term for financial management in business is personal finance. 10. Hedging is the process of eliminating uncertainty by entering into an agreement with a counterparty.

I. TRUE OR FALSE (10 items) Write T if the statement is correct, otherwise write F. 1. Debt Ratio is equal to Total Assets over Total Liabilities. 2. The impact that the decisions of a management team have on a company is called Lega Risk. 3. Current assets consist of assets that should be converted to cash within one (1) year. 4. In risk, the greater the variability, the greater the risk. 5. The cash flow statement, or statement of cash flow is consisted of three components. 6. A return can only be expressed in percentages. 7. Working Capital is equal to Current Assets minus Current Liabilities. 8. The impact of changes in social norms, movements, and unrest is social risk. 9. Another term for financial management in business is personal finance. 10. Hedging is the process of eliminating uncertainty by entering into an agreement with a counterparty.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 10P

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