14级财务管理专业英语习题.docx

《14级专业英语》复习资料
考试题型：
一、短语中英互译(20x1=20分)
二、从下列选项中选出最佳答案(20x1=20分)
三、计算题（25分）
四、段落中英互译（35分）

同学们:考试的时候请带上没有存储功能的计算器，试卷上只要是涉及到计算的题里面的数字可能与复习资料上的数字不完全一样，但是计算方法是相似的，所以大家要掌握计算方法，考试的时候要自己计算。预祝同学们取得好成绩。

Part I terminology translation (1*20 points)
Directions: interpret the following terminology in English or Chinese.（范围课后核心词汇）e.g.：
1. financial management---译成汉语 2.普通股----译成英语
Part II Choice questions (1*20 points) (Please write your answer in the following table)
1. Financial statement does not include ( )
A. balance sheet B. income statement
C. cash flow statement D. working sheet
2. An increase in which one of the following will increase the operating cash flow?
A.employee salaries B. office rent
C. building maintenance D. equipment depreciation
3. The process of planning and managing a firm’s long-term investments is called:
A. working capital management. B. financial depreciation.
C. capital budgeting. D. capital structure.
4. Cash equivalents include ( )
A. time deposits B. inventories
C. accounts receivable D. prepaid expenses
5. The internal rate of return for a project will increase if:
A. the initial cost of the project can be reduced. B. the total amount of the cash inflows is reduced.
C. the required rate of return is reduced. D. the salvage value of the project is omitted from the analysis.
6. Which of the following belongs to current liabilities?( )
A. mortgages payable B. prepaid expenses
C. notes payable D. bonds payable
7. You spent $500 last week fixing the transmission in your car. Now, the brakes are acting up and you are trying to decide whether to fix them or trade the car in for a newer model. In analyzing the brake situation, the $500 you spent fixing the transmission is a(n) ___ cost.
A. opportunity B. sunk
C. incremental D. fixed
8. Which of the following statements are correct concerning diversifiable risks?
I. Diversifiable risks can be essentially eliminated by investing in several securities.
II. The market rewards investors for diversifiable risk by paying a risk premium.
III. Diversifiable risks are generally associated with an individual firm or industry.
IV. Beta measures diversifiable risk.
A. I and III only B. II and IV only
C. I and IV only D. II and III only
9. Which of the following is a liability account?（ ）
A. prepaid insurance B. additional paid-in capital
C. salaries payable D. accumulated depreciation
10. Accountants employed by large corporations may work in the areas of the following except ( )
A. product costing and pricing B. budgeting
C. internal auditing D. product producing
11. A corporation’s first sale of equity made available to the public is called a(n):（ ）
A. share repurchase program. B. private placement.
C. initial public offering (IPO). D.seasoned equity offering (SEO).
12. Standard deviation measures ____ risk.
A. total B. nondiversifiable C. unsystematic D. systematic
13. ( ) is the value at some future time of a present amount of money, or a series of payments, evaluated at a given interest rate.
A. future value B. present value C. intrinsic value D. market value
14. Ellesmere Corporation issues 1 million $1 par value bonds. The stated interest rate is 8% per year and the interest is paid twice a year. What is the real interest rate of the bond? ( )
A. 6% B.4% C. 10% D. (1+8%/2)2-1
15. Your firm purchased a warehouse for $335,000 six years ago. Four years ago, repairs were made to the building which cost $60,000. The annual taxes on the property are $20,000. The warehouse has a current book value of $268,000 and a market value of $295,000. The warehouse is totally paid for and solely owned by your firm. If the company decides to assign this warehouse to a new project, what value, if any, should be included in the initial cash flow of the project for this building? （ ）
A. $268,000 B. $295,000 C. $395,000 D. $515,000
16.Which one of the following will decrease the operating cycle?
A. paying accounts payable faster
B. discontinuing the discount given for early payment of an accounts receivable
C. decreasing the inventory turnover rate
D. collecting accounts receivable faster
17. Assume that dividends of a common stock will be maintained at D forever, and the required return of the stockholder is r, the par value of the stock is m, the value of the stock is ( )
A. m B. m+D C. m+D/r D. D/r
18. Which of the following items has the most risk? ( )
A. treasury bill B. corporate bond C. preferred stock D. common stock
19. ( ) equals the gross profit divided by net sales of a firm.
A. gross profit margin B. net profit margin C return on investment D. return on equity
20. ( ) is the ratios that measure a firm’s ability to meet short-term obligations
A. liquidity ratios B. leverage ratios C. coverage ratios D. activity ratios
21.Sensitivity analysis helps you determine the:
A. range of possible outcomes given possible ranges for every variable.
B. degree to which the net present value reacts to changes in a single variable.
C. net present value given the best and the worst possible situations.
D. degree to which a project is reliant upon the fixed costs.
22. According GAAP revenue is recognized as income when: （ ）
A. a contract is signed to perform a service or deliver a good.
B. the transaction is complete and the goods or services delivered.
C. payment is received.
D. income taxes are paid.
E. all of the above.
23. ( ) is the result of Net Profit Margin × total asset turnover × (total assets/shareholders’ equity)
A. Return on equity B. return on investment C. current ratio D. quick ratio
24. Government tax law adjustment is ( ) to a firm.
A. general economic risk B. inflation and deflation risk C. firm-specific risk
25.Which of the following statements concerning the income statement is not true?
A. It measures performance over a specific period of time.
B. It determines after-tax income of the firm.
C. It includes deferred taxes.
D. It does not include depreciation.
E. it treats interest as an expense.
26.Which of the following is not a noncash deduction?
A. Depreciation. B. Deferred taxes. C. Interest. D. Two of the above E. All of the above.
27.Sasha Corp had an ROA of 10%. Sasha’s profit margin was 6% on sales of $180. What are total assets? （ ）
A.$300 B.$108 C.$48. D$162.
28. Calculate net income based on the following information ( )
Sales = $200.00
Cost of goods sold = $100.00
Depreciation = $18.00
Interest paid = $25.00
Tax rate = 34%
A. $16.50 B. $37.62 C. $34.60 D. $4.60
29.Which of the following is not true? （ ）
A. Financial markets can be used to adjust consumption patterns over time.
B. Corporate investment decisions have nothing to do with financial markets,
C. Financial markets deal with cash flows over time.
D. Investment decisions rely on the economic principles of financial markets.
E. None of the above.
30. ( ) is concerned with the acquisition, financing, and management of assets with some overall goal in mind.
A. Financial management B. Profit maximization C. Agency theory D. Social responsibility
31. A major disadvantage of the corporate form of organization is the ( ).

A. double taxation of dividends B. inability of the firm to raise large sums of additional capital
C. limited liability of shareholders D. limited life of the corporate form.
32. Interest paid (earned) on both the original principal borrowed (lent) and previous interest earned is often referred to as ( ).
A. present value B. simple interest C. future value D. compound interest
33. If the intrinsic value of a share of common stock is less than its market value, which of the following is the most reasonable conclusion? ( )
A. The stock has a low level of risk. B. The stock offers a high dividend payout ratio.
C. The market is undervaluing the stock. D. The market is overvaluing the stock.
34. A 250 face value share of preferred stock, pays a 20 annual dividend and investors require a 7% return on this investment. If the security is currently selling for 276, what is the difference (overvaluation) between its intrinsic and market value (rounded to the nearest whole dollar)?
A. approximately 26 B. approximately 10 C. approximately 6 D. approximately 1
35. Felton Farm Supplies, Inc., has an 8 percent return on total assets of 480,000 and a net profit margin of 6percent. What are its sales? ( )
A. 3,750,000 B.640,000 C. 480,000 D. 1,500,000
36. A company can improve (lower) its debt-to-total asset ratio by doing which of the following?
A. Borrow more. B. Shift short-term to long-term debt.
C. Shift long-term to short-term debt. D. issue common stock.
37. The DuPont Approach breaks down the earning power on shareholders' book value (ROE) as follows: ROE = ( ).
A. Net profit margin × Total asset turnover × Equity multiplier
B. Total asset turnover × Gross profit margin × Debt ratio
C. Total asset turnover × Net profit margin
D. Total asset turnover × Gross profit margin × Equity multiplier
38. Which of the following items concerns financing decision? ( )
A. sales forecasting B. bond issuing C. receivables collection D. investment project selection
39. Which of the following items is the function of a treasurer? ( )
A. cost accounting B. internal control C. capital budgeting D. general ledger
40. For financial instruments, ( ) is judged in relation to the ability to sell a significant volume of securities in a short period of time without significant price concession.
A. maturity B. marketability C. default D. inflation
41. ( ) is the value at some future time of a present amount of money, or a series of payments, evaluated at a given interest rate.
A. future value B. present value C. intrinsic value D. market value
Part III: Calculation Questions ( 2*10 points)（注意：要写出计算公式和计算过程，否则不得分；需要用文字描述的问题回答内容要详细，语句正确、完整。）
1. Use the financial information for the ABC Corporation to answer problems.
ABC Corporation
Balance Sheet as of December 31, 201X
(Millions of dollars)
Current assets Current liabilities
Cash $ 201X Accounts payable $2325
Accounts receivable 4782 Other current debt 3009
Inventory 3401 Total $5334
Total $10189 Long-term debt 1977
Fixed assets Common stock 5215
Net fixed assets 4346 Retained earnings 201X
Total assets $14535 Total liabilities and
stockholders' equity $14,535

ABC Corporation
Income Statement for Year Ended December 31, 201X
(Millions of dollars)
Sales $20909
Cost of goods sold 14407
General, selling, and admin, expenses 3801
Depreciation 1225
Earnings before interest and taxes $1476
Interest expense 639
Earnings before taxes $837
Taxes (40%) 335
Net income $ 502
Per share data:
Outstanding shares (millions) 1205
Earnings per share $0.42
Dividends per share $0.00
Market price per share $19.25
Book value per share $5.99

(1) Prepare a common-size balance sheet for ABC Corporation. What are the largest two expense categories for the company? What percentage of the company is financed by short-term sources of funds? how much and what percentage of the company is financed by long-term sources?

(2) Based on statements, calculate the following ratios :
Current ratio
Quick ratio
Accounts receivables turnover ratio
Debt ratio
Return on assets=
Price/earnings ratio

(3) What do you think about ABC Corporation’s financial situation?

2. The most recent financial statements for company CCC are shown here ($):
Income Statement
Balance Sheet
Sales
10,400
Current assets
11,000
Current liabilities
10,000
Costs
6,820

Long-term debt
12,000
Taxable Income
3,580
Fixed assets
27,000
Equity
16,000
Taxes
1,253
Total
38,000
Total
38,000
Net income
2,327

1） Compute the following ratios:
Current ratio:
Total debt ratio
Total asset turnover
Profit margin
Equity multiplier
ROA
ROE
2） Using Du Pont Identity to compute the ROE

3. You need to have $100000 at the end of 10 years. To accumulate this sum, you have decided to save a certain amount at the end of each next 10 years and deposit it in the bank. The bank pays 8% interest compounded annually for long-term deposit. How much will you have to save each year? (PVIF(8%,10)=0.463, PVIFA(8%,10)=0.671, FVIF(8%,10)=2.159, FVIFA(8%,10)=14.487)

4. You expect to deposit the following cash flows at the end of years 1 through 5, 1,000; 4,000; 9,000; 5,000; and 2,000 respectively. Alternatively, you could deposit a single amount today at the beginning of year 1 (end of year 0). How much is the single deposit needed to be today if you can earn 10% compounded annually? (PVIF(10%,1)=0.909,PVIFA(10%,2)=0.826, FVIF(10%,3)=0.751, FVIFA(10%,4 )=0.683, FVIFA(10%,5)=0.621)
5. A Microgats Industries bond has a 10% coupon rate and a $1,000 face value. Coupons are paid semiannually, and the bond has 20 years to maturity. If investor required a 12% yield, what’s the bond’s value?
(P/A, 6%, 40)=15.0463 (P/s, 6%, 40) = 0.0972
(P/A, 12%, 20)=7.4694 (P/s, 12%, 20) = 0.1037
Part IV Translation
Topic 1 Introduction to Financial Management
Financial management is an integrated decision-making process concerned with acquiring, financing, and managing assets to accomplish some overall goal within a business entity. Other names for financial management include managerial finance, corporate finance, and business finance. Making financial decisions is an integral part of all f