1. Which of the following actions are likely to reduce the length of a company's cash conversion cycle?
(A) Adopting a just-in-time inventory system which reduces the inventory conversion period.
(B) Reducing the average day's sales outstanding (DSO) on its accounts receivable
(C) Reducing the amount of time the company takes to pay its suppliers.
(D) All the above answers are correct
(E) Answers A and B are correct
2. Which of the following statements is most correct:
(A) The cash balances of most firms consist of transactions, compensating, precautionary, and speculative balances. The total desired cash balance can be determined by calculating the amount needed for each purpose and then summing them together
(B) The easier a firm's access to borrowed funds the higher its precautionary balances will be, in order to protect against sudden increases in interest rates.
(C) For some firms, holding highly liquid marketable securities is a substitute for holding cash because the marketable securities accomplish the same objective as cash.
(D) Firms today are more likely to rely on cash than on reserve borrowing power or marketable securities for speculative purposes because of the need to move quickly.
(E) Each of the statements above is false
3. Which of the following statements is most correct:
(A) Shorter-term cash budgets, in general, are used primarily for planning purposes while longer-term budgets are used for actual cash control.
(B) The cash budget and the capital budget are planned separately and although they are both important to the firm, they are independent of each other.
(C) Since depreciation is a non-cash charge, it does not appear on nor have an effect on the cash budget.
(D) The target cash balance is set optimally such that it need not be adjusted for seasonal patterns and unanticipated fluctuations in receipts, although it is changed to reflect long-term changes in the firm's operations.
(E) The typical actual cash budget will reflect interest on loans and income from investment of surplus cash. These numbers are expected values and actual results might turn out different
4. Other things held constant, which of the following will cause an increase in working capital?
(A) Cash is used to buy marketable securities.
(B) A cash dividend is declared and paid.
(C) Merchandise is sold at a profit, but the sale is on credit.
(D) Long-term bonds are retired with the proceeds of a preferred stock issue.
(E) Missing inventory is written off against retained earnings.
5. Which of the following is typically part of the cash budget?
(A) Payment lag
(B) Payment for plant construction
(C) Cumulative cash
(D) All of the above
(E) Only answers A and C above
6. Which of the following statements concerning the cash budget is true?
(A) Depreciation expense is not explicitly included, but depreciation effects are implicitly included in estimated tax payments
(B) Cash budgets do not include financial expenses such as interest and dividend payments.
(C) Cash budgets do not include cash inflows from long-term sources such as bond issues.
(D) Answers A and B above
(E) Answers A and C above
7. In Japan, 90-day securities have a 4 percent annualized return and 180-day securities have a 5 percent annualized return. In the United States, 90-day securities have a 4 percent annualized return and 180-day securities have an annualized return of 4.5 percent. All securities are of equal risk. Japanese securities are denominated in terms of the Japanese yen. Assuming that interest rate parity holds in all markets, which of the following statements is most correct?
(A) The yen-dollar spot exchange rate equals the yen-dollar exchange rate in the 90-day forward market
(B) The yen-dollar spot exchange rate equals the yen-dollar exchange rate in the 180-day forward market.
(C) The yen-dollar exchange rate in the 90-day forward market equals the yen-dollar exchange rate in the 180-day forward market.
(D) Answers A and B are correct
(E) Answers B and C are correct
8. Which of the following statements is false?
(A) Any bond sold outside the country of the borrower is called an international bond.
(B) Foreign bonds and Eurobonds are two important types of international bonds.
(C) Foreign bonds are bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is sold
(D) The term Eurobond specifically applies to any foreign bonds denominated in U.S. currency.
(E) None of the above
9. If the inflation rate in the United States is greater than the inflation rate in Sweden, other things held constant, the Swedish currency will
(A) Appreciate against the U.S. dollar.
(B) Depreciate against the U.S. dollar.
(C) Remain unchanged against the U.S. dollar
(D) Appreciate against other major currencies.
(E) Appreciate against the dollar and other major currencies
10. Multinational financial management requires that
(A) The effects of changing currency values be included in financial analyses.
(B) Legal and economic differences be considered in financial decisions.
(C) Political risk be excluded from multinational corporate financial analyses.
(D) All the above
(E) Only A and B above
11. Which of the following are reasons why companies move into international operations?
(A) To take advantage of lower production costs in regions of inexpensive labor.
(B) To develop new markets for their finished products.
(C) To better serve their primary customers.
(D) Because important raw materials are located abroad
(E) All the above
12. Which of the following statements is most correct:
(A) Compensating balance requirements apply only to businesses, not to individuals.
(B) Compensating balances are essentially costless to most firms, because those firms would normally have such funds on hand to meet transactions needs anyway.
(C) If the required compensating balance is larger than the transactions balance the firm would ordinarily hold, then the effective cost of any loan requiring such a balance is increased.
(D) Banks are prohibited from earning interest on the funds they force businesses to keep as compensating balances
(E) All the above statements are false
13. Which of the following statements is most correct:
(A) Poor synchronization of cash flows which results in high cash management costs can be partially offset by increasing disbursement float and decreasing collections float
(B) The size of a firm's net float is primarily a function of its natural cash flow synchronization and how it clears its checks.
(C) Lockbox systems are used mainly for security purposes as well as to decrease the firm's net float.
(D) If a firm can speed up its collections and slow down its disbursements, it will be able to reduce its net float.
(E) A firm practicing good cash management and making use of positive net float will bring its checkbook balance as close to zero as possible, but must never generate a negative book balance.
14. Which of the following statement completions is most correct? If the yield curve is upward sloping, then a firm's marketable securities portfolio, assumed to be held for liquidity purposes, should be
(A) Weighted toward long-term securities because they pay higher rates.
(B) Weighted toward short-term securities because they pay higher rates.
(C) Weighted toward U.S. Treasury securities to avoid interest rate risk.
(D) Weighted toward short-term securities to avoid interest rate risk.
(E) Balanced between long- and short-term securities to minimize the effects of either an upward or a downward trend in interest rates.
15. A lockbox plan is most beneficial to firms which
(A) Send payables over a wide geographic area
(B) Have widely disbursed manufacturing facilities.
(C) Have a large marketable securities account to protect.
(D) Hold inventories at many different sites.
(E) Make collections over a wide geographic area.
The solution explains some multiple choice questions relating to cash management
Amino acids multiple choice questions
Which statement is incorrect about the classification of amino acids?
a. Alanine and valine are neutral, nonpolar amino acids.
b. Lysine and arginine are basic amino acids.
c. Tryptophan and phenylalanine are aromatic amino acids.
d. Aspartic acid and aspargine are acidic amino acids.
Which of the following amino acids is the least water soluble at pH 7.0?
b. Glutamic acid
Which amino acid would migrate the furthest toward the anode (positive electrode) during paper electrophoresis at pH 7.0?
a. Aspartic acid
Which of the following functional groups, attached to an inert matrix, could function as a cation exchanger?
Which of the following amino acids would make the best buffer at pH 4.5?
d. Aspartic acid
Which fact is incorrect about stereoisomers?
a. A diastereomer is a nonsuperimposable non-mirror image.
b. An enantiomer is a nonsuperimposible mirror image.
c. Diastereomers have different melting points.
d. Diastereomers rotate plane polarized light in equal but opposite direction.
Which statement is incorrect about L-isoleucine?
a. Its enantiomer is named O-isoleucine.
b. It contains a total of two asymmetric or chiral carbons.
c. It can also be named as (28, 38)-isoleucine using the (R,8) system.
d. Its diastereomer would be named O-alloisoleucine.
An isoelectric amino acid was dissolved in water and the resulting pH was approximately 7.6. What amino acid would possess this property?
b. Glutamic acid
What volume of NaOH is required to adjust the solution of monosodium aspartate to pH 9.8?
a. 1 ml
b. 2 ml
c. 3 ml
d. 6 ml or more
What volume of 2 N Hel is required to completely titrate the 4 mmol of monosodium aspartate?
a. 2 ml
d. 6 ml or more
Which statement is correct about the peptide ala-ser?
a. Alanine is at the N-terminal of the peptide.
b. There are a total six atoms that lie in the plane of the peptide bond linking alanine to serine.
c. The alpha-carbon of alanine is sp3 hybridized d All the above are correct statements.
What is the product formed from the acid hydrolysis of a simple amide?
a. Acid & base
b. Aldehyde & alcohol
c. Acid & amine
d. Ester & alcohol
The complete acid hydrolysis of the peptide ala-gln-trp-ser would yield:
a. Ala, gin, trp, ser
b. Ala, glu, ser
c. Ala, glu, trp, ser
d. Ala. ser
Fibrous proteins, such as collagen, have which of the following properties?
a. Highly soluble in water
b. Their hydrophilic residues are directed into the interior of the protein
c. Exhibit enzymatic activity
d. Serve structural roles in the cell
Quaternary structure is associated with:
a. The overall shape of a polypeptide chain
b. The sum of the secondary and tertiary interactions
c. Simple proteins with only one subunit
d. The relative orientation of one polypeptide to another polypeptide in a multi-subunit protein.
The information needed to define the structure of a protein is essentially contained in:
a. Amino acid composition
b. Amino acid sequence
c. Secondary structure
d. Tertiary structure.
Insulin is a polypeptide hormone that contains two short polypeptide chains linked by two interstrand disulfide bonds. The most logical order of events to perform in order to sequence this protein would be:
A: The peptides are reduced with mercaptoethanol.
B: The peptides are sequenced using Edman chemistry .
C: The peptides are separated by chromatography techniques. 0: The peptides are alkylated with iodoacetamide.
a. A, D,C, B b.C,A, 0, B
c. C, B, A, 0
d. A, B, C, 0
Which statement is incorrect about the peptide val-asp-trp-asn-ser?
a. This peptide would show a strong absorption band at 280 nm.
b. Reaction with chymotrypsin would yield two peptides.
c. To synthesize this peptide using the solid phase method of Merrifield, the amino acid directly attached to the resin would be serine.
d. After the second round of Edman chemistry using the reagent PITC, the PTH -amino acid residue released would be PTH-asn.
Which statement is incorrect about the reaction of the peptide ser-Iys-asp-trp-cys-metasn-phe-ala with the following reagents?
a. Reaction with cyanogens bromide would yield two peptides.
b. Reaction with trypsin would result in three peptides. The smallest of three peptides would have the highest pi of the three.
c. Reaciton with chymotrypsin would result in the peptides ser-Iys-asp & try-cys-met-Iysasn-phe-ala .
d. Reaction with chymotrypsin would yield a different set of peptides that overlap those obtained with tryspsin
Determine the amino acid sequence of the following oligopeptide from the experimental data below:
The amino acid composition is found the be ala, Iys, phe, met, cys plus some
2. The peptide has a molecular weight around 700 Da and absorbs at 280 nm.
3. Treatment with carboxypeptidase results in tryptophan and a peptide.
4. CNBr treatment yields a tetrapeptide and a dipeptide.
5. Trypsine digestion produces an amino acid and a pentapeptide with met on the amino end.
6. Chymotrypsin digestion yields a dipeptide and a tetrapeptide.
d. Iys-ala-cys-phe-met -trp