Finance Questions

what's the effect of dividends and expenses on shareholder's equity (debit)?

When entering a transaction in the journal, should the debit or credit be written first?

Which should be indented in the journal, the debit or credit?

in liabilities t account what's normally bigger, credits or debits?

Two students are discussing the use of a trial balance. They wonder whether the following errors, each considered separately, would prevent the trial balance from balancing. (a) The bookkeeper debited Cash for €600 and credited Wages Expense for €600 for payment of wages. (b) Cash collected on account was debited to Cash for €900 and Service Revenue was credited for €90. What would you tell them?

which column changes when you debit an account?

which column changes when you credit an account?

for which statement is the ending balance in the retained earnings needed?

what's the effect of issuance of share capital and revenues on shareholder's equity (credit)?

what info is taken from the statement of financial position for the statement of cash flow?

in assets t account what's normally bigger, credits or debits?

1. The New York Stock Exchange is primarilya.A secondary market.b.An organized auction market.c.An over-the-counter market.d.Answers a and b above are both correct.e.Answers b and c above are both correct.

7. Which of the following statements is correct?a.Flotation costs under a best-efforts arrangement typically are less for a given new equity issue than the costs associated with an underwritten offering, and the corporation is more certain of getting the needed funds under a best-efforts offering. This is why best efforts deals are most common.b.If a firm decides to issue securities through a direct (or private) placement, then the underwriting syndicate that is formed to distribute the securities to the public may, at its discretion, decide either to guarantee or not to guarantee the sale of the securities.c.If the demand curve for a firm's stock is relatively flat, the firm will have a more difficult time raising a large amount of new equity funds for expansion than would be true if this demand curve were steeper.d.It is possible for a firm to go public, and yet not raise any additional capital.e.None of the above is a correct statement.

14. Which of the following assets are traded in the derivative markets?a.Stocks, bonds, and optionsb.Stocks, futures, and optionsc.Options, futures, and swapsd.Futures, bonds, and swaps

13. If you purchase commercial paper that matures in 180 days from the issuing firm this transaction will take place in ____ markets and ____ markets.a.capital; primaryb.capital; secondaryc.money; primaryd.money; secondary

9. ____ efficiency states that all information contained in past price movements only is fully reflected in the current market prices.a.Weak-formb.Semistrong-formc.Strong-formd.Economic

12. If you purchase stock from a firm conducting a seasoned equity offering, this transaction will take place in ____ markets and ____ markets.a.capital; primaryb.capital; secondaryc.money; primaryd.money; secondary

20. The derivatives market allows fora.investors to speculate on price movements.b.the purchase corporate debt.c.the hedging of exposure to price movementsd.two of the abovee.all of the above

6. Most American investors who are interested in investing in companies listed on foreign exchanges do so by purchasing ____.a.Foreign stocks directly from brokers that do business in the country where the company is located.b.Foreign stocks from brokers in the United States.c.American Depository Receipts (ADRs) or mutual funds that hold international stocks.d.Stocks directly from the foreign company.

3. You have just purchased shares in the Hi-Tech Long-Term Bond Fund, a mutual fund that invests in long-term corporate bonds. Your purchase constitutesa.A direct transfer of funds.b.An indirect transfer through an investment banker.c.An indirect transfer through a financial intermediary.d.A money market transaction.e.All of the above.