A
Total Liabilities divided by Total Assets provides the _____ Ratio.
Debt-to-Asset
What term refers to producing a good in the least costly way.
Production Efficiency
How many stocks are in the Standard and Poor's Composite Index?
500
The highest financial strength bond rating is?
AAA
Changes in accounts receivable, accounts payable, inventory values, and prepaid expenses are examples of ________ adjustments on an income statement.
Accrual
What is the only U.S. state that grows coffee commercially?
Hawaii
What is the common name for the rate of interest charged by commercial banks to first-class-risk corporate borrowers for short-term loans?
Prime rate
The difference between total cash inflows and total cash outflows for an operating period.
Net cash flow
WACC stands for?
Weighted-average cost of capital
What financial statement presents the cash receipts and cash payments over a specified time period?
statement of cash flows (NOT cash flow budget)
What type of mortgage carries a lower initial rate but is allowed to vary (adding risk for the borrower)?
Adjustable rate mortgage
What is the chemical symbol for gold?
Au
What are the three major approaches to appraisal of property?
Income, market and cost approaches
What is a federated cooperative?
A cooperative "owned" by other cooperatives
A bond that can be exchanged for common stock at a previously specified ratio is referred to as:
a convertible bond
Name 3 factors that affect the interest rate of a government bond.
Risk; Term; Inflation; Taxes
In publicly held companies, the equity that does not have priority for dividends nor in bankruptcy proceedings is called ______________.
common stock
What is the capital of KY?
Frankfort
What term describes a reduction in the value of an asset?
Capital Loss
How many companies are combined to form the Dow Jones Industrials Average?
30
Overnight loans between banks of their deposits with the Fed
Federal funds instrument (Fed Funds)
For a retailing operation, how would inventory turnover be calculated?
divide cost of goods sold by the average merchandise inventory for a specified period
Making use of legal methods to minimize a tax burden is known as tax _________, while the illegal nonpayment of taxes, failing to report, or reporting inaccurately is called tax _______.
avoidance; evasion
In what year was the first Kentucky Derby run?
1875
The problem of distinguishing good risk applicants from the bad risk applicants.
Adverse selection
In the area of inventory control what is EOQ?
Economic Order Quantity.
With a nominal interest rate of 10.0 percent and inflation of 2.5 percent, the real interest rate is about:
7.5 percent
If you receive a bill from a supplier that states; "2/10 net 30," what does it mean?
Two percent discount if paid in 10 days, entire amount due in 30 days
What is the actuarial rate of interest on a loan of $1,000 repaid one year later with a payment of $1,120?
i = (1,120/1000) - 1 = 0.12 = 12%
What is the state horse of Kentucky?