Which financial planning document should you use to measure your current financial condition?

A) Budget
B) Cash budget
C) Balance sheet
D) Income statement
E) Statement of financial ratios

Answer: C

Business

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A type of bonus that does not have a performance evaluation over time is a

a. merit bonus. b. merit award. c. profit bonus. d. spot award

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What is the primary advantage of a firm that is able to issue commercial paper to finance its

short-term assets? A) Interest rates on commercial paper are generally lower than rates on bank loans. B) Commercial paper is guaranteed by the Federal Government C) Commercial paper provides greater flexibility in terms of repayment. D) Commercial paper does not need to be repaid.

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