Question

22. is a balance sheet subtotal made up made up of major assets that will likely not be converted into cash within the next 12 months. a. Total current assets b. Total assets c. Net fixed assets d. Fixed assets 23. is the cumulative amount shareholders paid for the common stock of a company beyond its par value. a. Deferred capital b. Preferred capital c. Paid-in capital in excess of par d. Provision for capital 24. An aging of accounts receivable is a schedule that: a. lists customers with unpaid balances in alphabetical order b. categorizes unpaid customer invoices based on the number of days they have been outstanding c. categorizes unpaid customer invoices based on how quickly they have been paid d. lists customers with unpaid balances in the order of least likely to most likely to pay 25. Convertible notes: a. are securities that document the terms of an investor's loan to a company, but also include an option for the investor to extend the length of the loan if desired by the investor at a future time b. are securities that document the terms of an investor's loan to a company, but also include an option for the investor to convert the loan into an equity position in the company if desired by the investor at a future time c. are securities that document the terms of an investor's equity position in a company, but also include an option for the investor to convert the equity into a loan to the company if desired by the investor at a future time d. are securities that document the terms of an investor's loan to a company, but also include an option for the investor to convert the loan into a foreign (non US) currency if desired by the investor at a future time 26. Best practices when structuring debt for a start-up business include all of the following except: a. negotiating the ability to pay interest only for a period of months or years, ideally until the new venture gets past its start-up phase b. negotiating a variable, annually inflation-adjusted interest rate c. negotiating a long repayment term with the ability to repay early, if and when desired d. negotiating the ability to renegotiate interest rates, fees, and repayment terms, if and when circumstances change

Answer 1

Solution:

22. _________is a balance sheet subtotal made up of major assets that will likely not be converted into cash within the next 12 months.
a. Total current assets
b. Total assets
c. Net fixed assets
d. Fixed assets
Answer: Option(d) Fixed Assets
Reason: Fixed assets refer to the assets which cannot be easily converted into money within 12 months. The liquidity of such assets is low

23. __________is the cumulative amount of shareholders paid for the common stock of a company beyond its par value.
a. Deferred capital
b. Preferred capital
c. Paid-in capital in excess of par
d. Provision for capital
Answer: Option(c) Paid-in capital in excess of par
Reason: Paid-in capital in excess of par is the premium paid by the shareholders over and above the share price of the company.

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