C) Low cost leadership, differentiation
D) Differentiation, monopolistic
E) Monopolistic simulation, differentiation
Which of the followingstatementsabout the business cycle is false?
A) Toward the end of a...
policy that is guaranteed renewable and convertible. Which of the followingstatementsabout Tom's policy is correct? |
a) | At the end of the 10 year term, Tom can choose to renew the policy for another 10 year period at the same premium rate. |
b) | At the end of the 10 year term, Tom can...
available for shareholders in the shape of dividend.
“Dividend can be paid only out of profits” Explain this statement and also discuss your role as a Finance Manager in the matters of dividendpolicy.
Dividend decision is highly important for a firm. It is required to plan to maximize the...
In the preparation of the financial statements for Uptown Limited a number of policy decisions about disclosure of information were made. (1) Identify the accounting concept on which each of the following d ecisions was based. Policy Decision Made (i) (ii...
D. Decreases total equity.
15. Book value per common share represents the
amount of equity assigned to each outstanding share
of common stock. Which one of the followingstatementsabout book value per common share is
A. Market price per common share usually
|10 |Which of the followingstatementsabout the treatment of inventory and work in progress in financial statement are correct? |
| |1 |Inventory should be valued at the lowest of cost, net realisable value and...
receivable turnover rate
increasing the accounts payable period
increasing the accounts receivable period
Which one of the followingstatements is correctabout a firm with seasonal sales?
A firm with a flexible financing policy secures sufficient long-term financing to fund...
leads to a reduction in a company's WACC.
__d__ 36. Which of the followingstatements is CORRECT?
In the WACC calculation, we must adjust the cost of preferred stock (the market yield) to reflect the fact that 70% of the dividends received by corporate investors are excluded from their...
9. Whichstatement is true about the tax treatment of a trust?
Choose 1 answer
A. Trusts are allowed a personal exemption in computing the fiduciary tax liability.
B. The alternative minimum tax (AMT) may apply to a trust only in the first tax year.
C. Unlike other taxpayers...
statements are prepared
Why do we need the closing process:
1. Revenue, expense and dividend accounts are temporary accounts. They measure amounts for a period of time and then need to start at zero for the next period.
2. Retained Earnings needs to be updated to its correct ending balance...
HOME WORK 12
1. Which of the followingstatements is CORRECT?
a. Perhaps the most important step when developing forecasted financial statements is to
determine the breakdown of common equity between common stock and retained earnings.
b. The first, and...
c) Trade Policy
d) Economic PolicyWhich of the following is the main tool of Fiscal Policy?
Select correct option:
b) Deficit Financing
d) Transfer Payments
In a tax _____ you give information about what you earn every year.
those who do not. It is difficult to see how this could be beneficial to the firm, however.
This statement implicitly equates the cost of equity capital with the stock’s dividend yield. If this were true, companies that pay no dividend would have a zero cost of equity capital, which is...
to understand, they suffer from serious limitations.
1. Limitations of financial statements: Ratios are based only on the information which has been recorded in the financial statements. Financial statements themselves are subject to several limitations. Thus ratios derived, there from, are also...
beneficiary, Celeste, which of the followingstatements is correct?
After the date of the gift, any dividends paid on the life insurance policy will be
taxable to Gayle.
b. Celeste can amend the beneficiary designation of the life insurance policy to
include her son, Matt, as a co-beneficiary...
stockholders want $50,000 of those earnings paid as dividends, then retained earnings will have two breakpoints. d. Answers a and b are both correct. e. All of the above are false.
24. Which of the followingstatements is correct? a. Suppose a firm is losing money and thus, is not paying taxes, and...
followingstatements is correct?
a In group insurance, a single policy is issued covering many persons
b A master policy covers servants of a master
c Both the statements above are correct
d Both the statements above are wrong
11 Which one of the followingstatements is correct?
a In a limited...
If a bank loan officer were considering a company's request for a loan, which of the followingstatements would you consider to be CORRECT?
The lower the company's TIE ratio, other things held constant, the lower the interest rate the bank would charge...
A. less than $20 million.
B. more than $20 million.
C. equal to $20 million.
D. unknown without knowing the maturity of the debt.
AACSB: Reflective Thinking Skills
Learning Objective: 3-1
49. Which of the followingstatementsabout...