Busıness Fınance I

Yanıt Açıklaması: Total assets = Total liabilites and equity, hence Equity = Total assets  -Total liabilities Total assets = Current assets + Long term assets = TL 500,000 + TL 300,000 = TL 800,000 Total Liabilites = Current liabilities + Long term liabilites =TL 400,000 +TL 150,000 = TL 550,000. Equity = TL 800,000 -TL 550,000 = TL 250,000

Yanıt Açıklaması: The shareholder value is the difference between the book value of the company and  the book value of its liabilities. Hence the shareholder value of the company is TL 800,000-TL 500,000=TL 300,000

Yanıt Açıklaması: Intangible asset is an identifiable non-monetary asset without physical substance. Examples of intangible assets include computer software, licences, trademarks, patents, films, copyrights and goodwill.

Yanıt Açıklaması: Businesses acquire resources from their environment and use them to produce goods and services. Within the business cycle, they perform three types of activities. These are financing, investing and operating activities. Financial statements represent the results of business activities performed by managers.The correct option is A.

Yanıt Açıklaması: The sales price per unit is also constant, it does not change over time.

Yanıt Açıklaması: The operating income of a business is measured by its EBIT (earnings before interest and taxes). EBIT is the difference between the sales revenue and the operating costs of the business.

Yanıt Açıklaması: For the nephew aged 17; 1000/(1+0.08)=925 For the nephew aged 15; 1000/(1+0.08)*(1+0.08)*(1+0.08)= 793 For the nephew aged 13; 1000/(1+0.08)*(1+0.08)*(1+0.08)*(1+0.08)*(1+0.08)= 680 In total= 925+793+680= 2398

Yanıt Açıklaması: A series of equal cash flows that occur for a given period at regular intervals is an annuity.

Yanıt Açıklaması: The main objective of a statement of financial position is to disclose fairly what a company owns and means used to get them at a certain date. It can be thought as a selfie of the company at a point in time. Thus, Balance Sheet provides a snapshot of the financial condition of the firm at a particular time.

Yanıt Açıklaması: Long-term assets are the assets that an entity expects to use for longer than one year or the operating cycle. ese assets are mainly acquired for the purpose of providing resources for the future operations of the entity. Common types of long term assets are; property, plant and equipment, intangible assets, long term investments, and prepaid expenses.

Yanıt Açıklaması: Analysts often use the concept of sustainable growth as a way to evaluate a firm’s future growth rate. Sustainable growth rate refers to the rate at which a firm can grow if its profitability and financial policies do not change.

Yanıt Açıklaması: Tasks about control include controlling whether or not funds are being used efficiently and effectively. It includes preparation of financial statements,internal auditing, budgeting, and tax management.

Yanıt Açıklaması: Net Working Capital is defined as the difference between the current assets and current liabilities of the same period.

Yanıt Açıklaması: A financial manager has two different tasks in business organizations: (1) treasury and (2) control.

Yanıt Açıklaması: Business ethics refers to a company’s attitude and conduct toward its employees, customers, community, and stockholders. Financial management, together with accounting, is one of the most relevant departments in corporations when it comes to business ethics. Financial information and financial transactions of corporations are expected to be in a non-misleading manner. Accounting fraud, holding back value relevant information, insider trading, overstated profits, understated costs, and conspiracies are examples of finance- related unethical behavior.

Yanıt Açıklaması: All the statements given are correct.

Yanıt Açıklaması: Some examples are management of delivering of financial reports, management of standardizing journal entries, analysis of financial data, driving financial plans, monitoring budgeting, management of cash flows, developing department goals matching long-term company targets, valuation of investments, portfolio management, management of spending procedures, monitoring financial feasibility studies.

Yanıt Açıklaması: Financial Leverage Effect ratio is expressed as follows : Financial Leverage Effect = ROE – ROA The correct answer is C.

Yanıt Açıklaması: A variable cost is a corporate expense that changes in proportion with production output.Variable costs  increase or decrease depending on a company’s production volume; they rise as production increases and fall as production decreases.A fixed cost is an expense or cost that does not change with an increase or decrease in the number of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any business activity. Therefore, the correct answer is D.

Yanıt Açıklaması: Five forms of business companies are defined in the code, which are (1) unlimited liability company, (2) special partnership (these two types of companies are considered as a proprietorship), (3) limited liability company, (4) joint stock company (these twotypes of companies are considered as a corporation), and (5) cooperative company.