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
The opportunity cost of any choice you make is the highest-valued alternative that you had to give up when you made the choice. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The basic format of an income statement is A) Assets – Liabilities = Profits. B) Income – Expenses = EBIT. C) Sales – Liabilities = Profits. D) Sales – Expenses = Profits. ANSWER D
Date: September 19th, 2020
Beginning in 2007 the United States experienced its most severe financial crisis since the Great Depression of the 1930s. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Financial ratios are often reported by industry or line of business because differences in the type of business can make ratio comparisons uninformative or even misleading. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Transactions in common stock occur in the money market, due to the large amount of money involved in such transactions. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses = $80,000; and Taxes = $300,000. Rogue’s gross profit is equal to A) $1,500,000. B) $1,070,000. C) $1,100,000. D) $770,000. […]
Date: September 19th, 2020
Profits-to-Sales relationships are defined as profit margins. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Financial ratios are useful for evaluating performance but should not be used for making financial projections. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Primary market transactions cannot be undertaken in over the counter markets. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
