When the present financial ratios of a firm are compared with similar ratios for another firm in the same industry it is called trend analysis. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Theoretically, market values of assets are better for evaluating the creation of shareholder wealth than accounting numbers, but accounting numbers are used because they are more readily available. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Cash markets are often referred to as spot markets. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
An efficient market is one where the prices of the assets traded in that market fully reflect all available information at any instant in time. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Company A and Company B both report the same level of sales and net income. Therefore, A) both A and B will report the same Earnings Per Share. B) both A and B will report the same Gross Profit Margin. C) both A and B will report the same Net Profit Margin. D) both A […]
Date: September 19th, 2020
The A corporation has an operating profit margin of 20%, operating expenses of $500,000, and financing costs of $15,000. Therefore, A) the corporation’s net profit margin is greater than 20%. B) the corporation’s gross profit margin is greater than 20%. C) the corporation’s gross profit margin is equal to 20% because gross profit is not […]
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
