Name:__________________________________________________________________
Class:______________________________________ Date:____________________

Finance 455 (9:40 class)
Examination 2
Monday, November 4, 2013
9:40 a.m. - 10:55 p.m.
20 Questions
100 points
Form (A)
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Use a pencil.
The proctor is leaving at 10:55 sharp.
Calculators permitted, but no sharing.
Leave your ID where the proctor can check it.
All questions are worth five (5) points. If there are any graphs on the test, then leave the questions from the graph blank on the computer scan sheet! Mark your answers directly on the graph!
Put your test form (A, B or C) on the answer sheet.
If more than one answer is …show more content…

a. Balance sheet - The Fake; Forecasted Statements - How you explain…; Income Statement Mortgage Application; Footnotes to Financials - Checking Account Statement; Cash Flow
Statement - Personal Tax return.
b. Balance sheet - Mortgage Application; Forecasted Statements - How you explain…; Income
Statement - The Fake; Footnotes to Financials - Checking Account Statement; Cash Flow Statement
- Personal Tax return.
c. Balance sheet - The Fake; Forecasted Statements - Checking Account Statement; Income
Statement - Mortgage Application; Footnotes to Financials - Personal Tax return; Cash Flow
Statement - How you explain….
d. Balance sheet - Mortgage Application; Forecasted Statements - How you explain…; Income
Statement - Checking Account Statement; Footnotes to Financials - The Fake; Cash Flow Statement
- Personal Tax return.
e. Balance sheet - Mortgage Application; Forecasted Statements - The Fake; Income Statement Personal Tax return; Footnotes to Financials - How you explain…; Cash Flow Statement Checking Account Statement.
12. A major disadvantage of the payback period method is that it
a.
Ignores risk.
b.
Ignores cash flows beyond the payback period.
c.
Does not directly account for the time value of money.
d.
Miscalculates the cost of debt.
e.
Only answers b and c are correct.
13. Credit cards are best designed for
a. e-commerce transactions
b. point-of-sale transactions
c. mail order