The time value of money is the opportunity cost of passing up the earning potential of a dollar today. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The purchase of a pool of mortgages is often financed through the sale of securities called mortgage-backed securities, or MBS. This is a key part of the securitization process. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
General Electric (GE) has been a public company for many years with its common stock traded on the New York Stock Exchange. If GE decides to sell 500,000 shares of new common stock, the transaction will be describe as A) a money-market transaction because GE raises new money to fund its business. B) a secondary […]
Date: September 19th, 2020
Common stockholders may use financial ratios to monitor manager actions to help lessen agency problems. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Underemployment is a term used to describe hiring employees who work for a designated foreman or team leader. In this sense they are employed under a specific individual. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Accounting information is used in financial ratio analysis because it is theoretically the best data to guide financial decision-making. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Money-market instruments include A) T-bills. B) T-bonds. C) common stock. D) preferred stock. ANSWER A
Date: September 19th, 2020
Use the following information to calculate the company’s accounting net income for the year. Credit Sales $800,000 Cash Sales $500,000 Operating Expenses on Credit $200,000 Cash Operating Expenses $700,000 Accounts Receivable (Beg. of Year) $50,000 Accounts Receivable (End of Year) $80,000 Accounts Payable (Beg. of Year) $50,000 Accounts Payable (End of Year) $100,000 Corporate Tax […]
Date: September 19th, 2020
Fortunately, Europe was largely shielded from the economic recession that afflicted the world economy in 2007. The European economies contracted less and have recovered much more rapidly than their counterparts in the United States and China. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Ratios of almost all companies are easily comparable because all public companies prepare their financial reports based upon generally accepted accounting principles. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
