The field of finance

1. The field of finance is closely related to the fields of:
A statistics and economics
B. statistics and risk analysis
C. economics and accounting
D. accounting and comparative return analysis
2. Which of the following properly lists balance sheet items in order of liquidity, from most liquid to least liquid’)
A. Accounts receivable. inventory. marketable securities. cash.
B. Cash. marketable securities, accounts receivable. inventory.
C. Inventory. marketable securities. cash. accounts receivable.
D. Cash. inventory. accounts receivable. marketable securities.
3. Amortization is considered a source of funds for the firm because:
A. it is purely an accounting entry and doesn’t involve a direct disbursement of funds, freeing up these funds for other investments
B. it represents a reduction in asset holdings
C. it represents an increase in an asset account
D. amortization is not a source of funds

Sample Solution

Finance is a field closely related to accounting that deals with the allocation of assets and liabilities over time under conditions of certainty and uncertainty. Finance also applies and uses the theories of economics at some level. Finance can also be defined as the science of money management. A key point in finance is the time value of money, which states that purchasing power of one unit of currency can vary over time. Order of liquidity is the presentation of assets in the balance sheet in the order of the amount of time it would usually take to convert them into cash. Thus, cash is always presented first, followed by marketable securities, then accounts receivable, then inventory, and then fixed assets.

at times supplanted by a quick n-bit convey spread viper. A n by n exhibit multiplier requires n2 AND doors, n half adders, and n2 , 2n full adders. The Variable Correction Truncated Multiplication technique gives a proficient strategy to re-ducing the power dissemination and equipment necessities of adjusted exhibit multipliers. With this strategy, the diagonals that produce the t = n , k least critical item pieces are disposed of. To make up for this, the AND doors that create the halfway items for section t , 1 are utilized as contributions to the changed adders in segment t. Since the k excess changed full adders on the right-hand-side of the cluster don’t have to create item bits, they are supplanted by adjusted decreased full adders (RFAs), which produce a convey, yet don’t deliver a total. To add the consistent that revises for adjusting mistake, k , 1 of the MHAs in the second column of the exhibit are changed to altered concentrated half adders (SHAs). SHAs are identical to MFAs that have an informat

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