Homework Answers
Correct Answer-
Accounting dilution creates market dilution.
Reason-
Accounting dilution is the lessening of the value of the shares in the company. When a company issues additional stocks and the size of the firm does not grow proportionally, the value of the stock decreases.
Market dilution is the lessening of the value of the shares in the market.
others are incorrect because of following reasons-
- A decline in EPS doesn't indicate market dilution.
- Market dilution doesn't result from negative NPV investments.
- Accounting dilution & Market dilution are not directly related
- Accounting dilution causes fall in EPS
Add Answer to:
Which one of these statements is correct? Multiple Choice A decline in EPS indicates market dilution....
Which of the following statements is (are) correct? Multiple Choice If a market is weak-form efficient,...
Which of the following statements is (are) correct? Multiple Choice If a market is weak-form efficient, it is also semi-strong-form and strong-form efficient. 0 If a market is semi-strong-form efficient, it is also strong-form efficient. 0 If a market is not semi-strong-form efficient, it must also be not weak-form efficient. 0 If a market is not strong-form efficient, it must be neither semi-strong-nor weak-form efficient. 0 If a market is not weak-form efficient, it must be neither semi-strong-nor strong-form efficient.
which of the following statements related to market crashes is correct? B 8 Which of the...
which of the following statements related to market
crashes is correct?
B 8 Which of the following statements related to market crashes is correct? Select one ut ot 0 a. Actions in Washington, DC, may have helped contribute to the market crashin 1929 but not to the 1987 crash. O b. Financial market crashes are unique to the United States O c. The market crash of 1987 occurred on a day when trading volume was light, indicating there were a...
Which one of these statements related to discounted payback is correct? Multiple Choice Payback is a...
Which one of these statements related to discounted payback is correct? Multiple Choice Payback is a better method of analysis than discounted payback. Discounted payback is used more frequently in business than payback. Discounted payback does not require a cutoff point. Discounted payback is biased towards short-term projects The discounted payback period increases as the discount rate decreases.
Which of the following statements about the interpretation of the financial statements is not correct? Multiple...
Which of the following statements about the interpretation of the financial statements is not correct? Multiple Choice 0 Interpreting the financial statements can only be performed by auditors. 0 Interpreting the financial statements is the final step in the accounting cycle. 0 To interpret the financial statements means to understand and explain the meaning and importance of information in accounting reports. 0 All of these statements are correct.
Which of the following statements is correct with respect to Fiduciary Funds? Multiple Choice Fiduciary funds...
Which of the following statements is correct with respect to Fiduciary Funds? Multiple Choice Fiduciary funds include Pension trust funds, Internal service funds, Private-purpose trust funds, and Investment trust funds. O Custodial funds are fiduciary funds which are used when resources are held by a government in a trustee capacity but no trust agreement is in place. se by a gover Fiduciary funds use the current financial resources measurement focus and accrual accounting Fiduciary funds must be adjusted when preparing...
Which of the following statements is not correct? Multiple Choice C ) The audit trial should...
Which of the following statements is not correct? Multiple Choice C ) The audit trial should be used to trace data through the accounting records to find and correct errors. 0 If the postclosing trial balance does not balance, there are errors in the accounting records. 0 The balance of the owner's capital account on the adjusted trial balance will ordinarily be different than that reported on the postclosing trial balance. 0 The balance of the owner's capital account, as...
Which of the following statements is CORRECT? Multiple Choice 0 Company-specific risk can be diversified away...
Which of the following statements is CORRECT? Multiple Choice 0 Company-specific risk can be diversified away 0 Lower beta stocks have higher required returns 0 Two securities with the same beta will have the same price 0 A stock's beta indicates its company-specific risk
Which of the following statements is correct? Multiple Choice An accounting system is suitable for a...
Which of the following statements is correct? Multiple Choice An accounting system is suitable for a firm as long as the system complies with GAAP. When accounting information is used for internal purposes, a company is not required to comply with specific external accounting standards. Managerial accounting information should be as accurate as the technology allows. Financial and managerial accounting are identical, only the users are different.
Which of the following statements about the receivables turnover analysis is correct? Multiple Choice Accounts receivable...
Which of the following statements about the receivables turnover analysis is correct? Multiple Choice Accounts receivable decline as companies sell on credit. Accounts receivable increase as companies receive payment. Receivables turnover refers to how fast receivables are collected. The days to collect will increase as the receivables turnover increases.
Which of the following statements is correct? Multiple Choice 0 Proprietary funds must prepare a Statement...
Which of the following statements is correct? Multiple Choice 0 Proprietary funds must prepare a Statement of Revenues, Expenses and Changes in Fund Net Position, Statement of Net Position and Statement of Cash Flows. Governmental funds must prepare a Statement of Revenue, Expenditures and Changes in Fund Balance, Statement of Fund Balance and Statement of Cash Flows. RSI is optional. 0 Fiduciary funds must prepare a Statement of Fiduciary Net Assets, Statement of Changes in Fiduciary Net Assets, Statement of...
Which of the following statements is (are) correct? Multiple Choice If a market is weak-form efficient, it is also semi-strong-form and strong-form efficient. 0 If a market is semi-strong-form efficient, it is also strong-form efficient. 0 If a market is not semi-strong-form efficient, it must also be not weak-form efficient. 0 If a market is not strong-form efficient, it must be neither semi-strong-nor weak-form efficient. 0 If a market is not weak-form efficient, it must be neither semi-strong-nor strong-form efficient.
which of the following statements related to market
crashes is correct?
B 8 Which of the following statements related to market crashes is correct? Select one ut ot 0 a. Actions in Washington, DC, may have helped contribute to the market crashin 1929 but not to the 1987 crash. O b. Financial market crashes are unique to the United States O c. The market crash of 1987 occurred on a day when trading volume was light, indicating there were a...
Which one of these statements related to discounted payback is correct? Multiple Choice Payback is a better method of analysis than discounted payback. Discounted payback is used more frequently in business than payback. Discounted payback does not require a cutoff point. Discounted payback is biased towards short-term projects The discounted payback period increases as the discount rate decreases.
Which of the following statements about the interpretation of the financial statements is not correct? Multiple Choice 0 Interpreting the financial statements can only be performed by auditors. 0 Interpreting the financial statements is the final step in the accounting cycle. 0 To interpret the financial statements means to understand and explain the meaning and importance of information in accounting reports. 0 All of these statements are correct.
Which of the following statements is correct with respect to Fiduciary Funds? Multiple Choice Fiduciary funds include Pension trust funds, Internal service funds, Private-purpose trust funds, and Investment trust funds. O Custodial funds are fiduciary funds which are used when resources are held by a government in a trustee capacity but no trust agreement is in place. se by a gover Fiduciary funds use the current financial resources measurement focus and accrual accounting Fiduciary funds must be adjusted when preparing...
Which of the following statements is not correct? Multiple Choice C ) The audit trial should be used to trace data through the accounting records to find and correct errors. 0 If the postclosing trial balance does not balance, there are errors in the accounting records. 0 The balance of the owner's capital account on the adjusted trial balance will ordinarily be different than that reported on the postclosing trial balance. 0 The balance of the owner's capital account, as...
Which of the following statements is CORRECT? Multiple Choice 0 Company-specific risk can be diversified away 0 Lower beta stocks have higher required returns 0 Two securities with the same beta will have the same price 0 A stock's beta indicates its company-specific risk
Which of the following statements is correct? Multiple Choice 0 Proprietary funds must prepare a Statement of Revenues, Expenses and Changes in Fund Net Position, Statement of Net Position and Statement of Cash Flows. Governmental funds must prepare a Statement of Revenue, Expenditures and Changes in Fund Balance, Statement of Fund Balance and Statement of Cash Flows. RSI is optional. 0 Fiduciary funds must prepare a Statement of Fiduciary Net Assets, Statement of Changes in Fiduciary Net Assets, Statement of...
Most questions answered within 3 hours.
-
It is said that Galileo discovered a basic principle of the
pendulum—that the period is independent...
asked 39 seconds from now -
The Cost of Equity and
Flotation Costs
Messman Manufacturing
will issue common stock to the public...
asked 6 minutes ago -
a) summarize the challenges facing New Britain today
b) identify some of its strengths
c) suggest...
asked 8 minutes ago -
**86 at 40 not 88. please show how got Tr in calculations thank
you
2) The...
asked 8 minutes ago -
McGlaun Company pays its employees every two weeks. The firm
last paid its employees on September...
asked 22 minutes ago -
You have been gifted a Mogwai as a pet and decide to do a little
online...
asked 27 minutes ago -
given the standard of 200 mg/dl and the absorbance of that
standard is 0.640. What is...
asked 29 minutes ago -
Exercise 8-51 Algo
An accounting professor is notorious for being stingy in giving
out good letter...
asked 37 minutes ago -
month
total distribution cost
level of activity (unit produced)
july
230.000
3500
august
250.000
3750
september...
asked 39 minutes ago -
A smoke detector system uses two devices, A and B. If smoke is
present, the probability...
asked 1 hour ago -
Your division head has assigned another important project to you
and your team. This project is...
asked 51 minutes ago -
Under normal use conditions, the Mean Time To Failure of a
heating coil can be modeled...
asked 1 hour ago