Cash flows and profits are synonymous; in other words, higher cash flows equal higher profits. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
One advantage of organized stock exchanges is increased stock price volatility resulting from the efficient exchange of pricing information. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Profits represent money that can be spent, and as such, form the basis for determining the value of financial decisions. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Owners equity increases each period by the amount of the corporation’s positive net cash flow. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
If two companies have the same revenues and operating expenses, their net incomes will still be different if one company finances its assets with more debt and the other company with more equity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The root cause of agency problems is conflicts of interest. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Investors will be indifferent between two investments if both investments have the same expected return. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Individuals renting out rooms in their home for overnight stays, individuals jointly owing a car with other owners, and individuals who give rides to people who call or text them are creating “new” liability exposures for insurers. The social change that creates these new liability exposures is called A) the millennial generation. B) the baby […]
Date: September 19th, 2020
Common-sized income statements are used to compare companies that have the same amount of revenues. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
When making financial decisions, managers should always look at marginal, or incremental cash flows. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
