The true owners of the corporation are the A) board of directors of the firm. B) holders of debt issues of the firm. C) common stockholders. D) preferred stockholders. ANSWER C
Date: September 19th, 2020
Given the following financial statements for ARGON Corporation, what is the company’s after-tax cash flow from operations? Income Statement Balance Sheet Year Ended 12/31/10 12/31/2010 12/31/2009 Sales $1,300,000 Current Assets $50,000 $45,000 Cost of Goods Sold 750,000 Fixed Assets 430,000 350,000 Operating Expenses 200,000 Total Assets $480,000 $395,000 Depreciation 100,000 EBIT 250,000 Current Liabilities $35,000 […]
Date: September 19th, 2020
The relevant risk to an investor is that portion of the variability of returns that cannot be diversified away. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The business income and extra expense coverage form covers loss of business income and continuing normal operating expenses. How is business income (revenue) defined? A) total sales B) total sales less cost of goods sold C) pre-tax net profit D) after-tax net income ANSWER Answer: C
Date: September 19th, 2020
S-type corporations and limited liability companies are taxed like partnerships, but have the advantage of limited liability for their owners. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
An Inter-Ocean Transfer cargo ship was forced to jettison some cargo in heavy seas. The various interests in the voyage at the time the property was jettisoned were If $400,000 worth of iron ore was jettisoned, for how much of this amount would Inter-Ocean Transfer be responsible under general average? A) nothing B) $160,000 C) […]
Date: September 19th, 2020
Based on the information in Table 4-2, the average collection period is A) 127 days. B) 70 days. C) 89 days. D) 81 days. ANSWER D
Date: September 19th, 2020
Rick is risk manager of Herald News, a daily newspaper in a competitive market. Rick wants to make sure that if Herald’s printing facility is damaged or destroyed, the paper will continue to be published. What type of insurance can Rick purchase to cover the added cost of continuing to print the paper after a […]
Date: September 19th, 2020
In terms of the costs to organize each, which of the following sequences is correct, moving from highest to lowest cost? A) sole proprietorship, general partnership, corporation, limited partnership B) general partnership, sole proprietorship, limited partnership, corporation C) sole proprietorship, general partnership, limited partnership, corporation D) corporation, limited partnership, general partnership, sole proprietorship […]
Date: September 19th, 2020
One type of commercial property insurance excludes perils that are covered by the basic coverages. Some businesses buy this coverage to fill coverage gaps, including flood and earthquake, and to cover property in other countries. This type of insurance is called A) protection and indemnity insurance. B) building and personal property coverage form. C) difference […]
Date: September 19th, 2020
