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- Following an economic trough, the economy will often enter: Group of answer choices a. an expansion. b. a contraction. c. deflation. d. a peak. e. another trough.The four stages of an economic cycle would not include Group of answer choices stagnation. peak trough expansion. recession.Which one of the following is a measure of long term solvency? A. Price earning ratio B. Profit margin C. Cash coverage ratio D. Receivables turnover E. Quick ratio
- Trend statements are better than common size statements at indicating which of the following? Multiple Choice stability. monetary changes. profitability. growth and decline.Is the accounting rate of return (ARR) the same thing as the return on investment (ROI)?An increase in the interest rate will cause A an increase in planned investment and an increase in the equilibrium GDP B a decrease in planned investment and a decrease in the equilibrium GDP C an increase in planned investment and a decrease in the equilibrium GDP D. a decrease in planned investment and an increase in the equilibrium GDP
- Which one of the following is most closely related to the net present value profile? A: Payback B: Discounted payback C: Profitability index D: Average accounting return E: Internal rate of return3. Compute Project Y’s accounting rate of return. The numerator drop down options are: accounts receivable, annual income, average investment, average total assets, cost of goods sold, current assets, current liabilities, net sales, total assets The denominator dropdown options are: accounts receivable, annual income, average investment, average total assets,explain how changes in each of the following would affect AFN, holding other things constant: the growth rate, the amount of accounts payable, the profit margin, and the payout ratio.
- A small increase in the annual rate of economic growth can lead to a larger increase in growth over time due to the effects of A the money supply. B compounding. C) regression towards the mean. D averaging.Compute for the following: 1. Accounting rate or return based on the average investment 2. Net Present Value 3. Traditional Payback PeriodMuch economic news we read about can be reinterpreted into our “M v = P Y” Take each of the following news headlines below and determine that event changes (increase or decrease) in: M or v or P or Y based on your understanding of monetary theory. You answer each situation by simply listing the one variable from the equation you think has changed—only ONE. Use and upward or downward arrow next to the one variable to indicate if the change was an increase or decrease. “Deposits in U.S. banks fell in 2015.” “American businesses are spending faster than ever.” “Prices of most consumer goods rose 12% last year.” “Workers produced 4% more output per hour last year.” “Real GDP increased 32% in the last decade.” “Deflation grips the economy and households put off shopping” “A hyperinflation grips the US and people try to spend before prices rise.” “A banking panic erupts and people hold more cash at home.”