1. Which of the following entities is more concerned about control than any other entity?

A. Vendors

B. Suppliers

C. Both A and B

D. None of the above

2. Which of the following is associated with flexibility ?

A. Obsolescence of a major product line

B. Downtown in sales

D. Downturn in business cycle

C. None of the above

3. The benefit cost ratio is 8 and the investment is 200. The total incremental cash flows are:

A. 200

B. 400

C. 600

D. None of the above

4. Jim’s LLC is purchasing a new machine for $180,000. The new machine would generate cash flow $100,000 for each of the next three years. Carpet uses a discount rate of 15%. What is the payback(in years)?

A. 1.4

B. 1.6

C. 1.8

D. 1.9

5. Which of the following statement records a firm’s financial situation on a single day?

A. Statement of financial position

B. Income statement

C. Statement of cash flows

D. All of the above.