Free CTP Exam Braindumps (page: 2)

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Which of the following are important uses of variance analysis in comparing actual cash flows with projected cash flows?

I). Identifying unanticipated changes in inventory
II). Enhancing short-term investment income
III). Validating a capital budget
IV). Identifying delays in accounts receivable collections

  1. I and II only
  2. I and IV only
  3. II and IV only
  4. I, II, III, and IV

Answer(s): B



An instrument that gives the right to buy a stated number of shares of common stock at a specified price is known as:

  1. an equity warrant
  2. a put option
  3. a zero coupon bond
  4. a subordinated debenture

Answer(s): A



A company plans to issue additional equity within the next 12 months but needs to issue debt at a low interest rate now. Which of the following instruments would BEST meet this objective?

  1. Convertible bonds
  2. Private placement issue
  3. Preferred stock
  4. Subordinated debentures

Answer(s): A



An arrangement in which a borrower makes periodic payments to a separate custodial account that is used to repay debt is known as a:

  1. sinking fund
  2. balloon payment
  3. mortgage
  4. zero-coupon bond

Answer(s): A






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