True or False 11) Accounting profits is the most relevant variable the financial manager uses to...
Homework Answers
11. False
12. True ( this is the reason 11 is false)
13. False - Rateo return is expected cash flows minus cost of producing goods and then divide by initial investment.
14. False. Actual can be more than expected.
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True or False
11) Accounting profits is the most relevant variable the
financial manager uses to...
1. The relevant variable a financial manager uses to measure retums is A) net income determined...
1. The relevant variable a financial manager uses to measure retums is A) net income determined using generally accepted accounting principles. B) earnings per share minus dividends per share. C) cash flows. D) dividends. 2. You are considering the purchase of a common stock that paid a dividend of $2.00 yesterday. You expect this stock to have a growth rate of 15 percent for the next 3 years, resulting in dividends of D1 = $2.30, D2 = $2.645, and D3...
. TRUE / FALSE QUESTIONS Enter “True” or “False” on the blank preceding each question. ______...
. TRUE / FALSE QUESTIONS Enter “True” or “False” on the blank preceding each question. ______ 1. Finance can be defined as the art and science of managing money. ______ 2. The field of Finance is an outgrowth of philosophy, which dates back to the 16th century. ______ 3. The primary principle used by financial managers when making decisions is “marginal cost/benefit analysis. ______ 4. The Sarbanes-Oxley Act of 2002 established an oversight board to monitor the accounting industry. ______...
4-1 Using a time line The financial manager at Starbuck Industries is considering an investment that...
4-1 Using a time line The financial manager at Starbuck Industries is considering an investment that requires an initial outlay of $25,000 and is expected to result in cash inflows of $3,000 at the end of year 1, $6,000 at the end of years 2 and 3, $10,000 at the end of year 4, $8,000 at the end of year 5, and $7,000 at the end of year 6. a. Draw and label a time line depicting the cash flows...
1) [True or False] Financial statements are the principal means through which financial information is communicated...
1) [True or False] Financial statements are the principal means through which financial information is communicated to those outside an enterprise. 2) [True or False] One weakness of accrual accounting is that it does not provide a good indication of the enterprise's present and continuing ability to generate favorable cash flows. 3) [True or False] The International Accounting Standards Board issues International Accounting Standards. 4) [True or False] The two major standard-setting organizations in the world are the International Accounting...
A financial manager is quotes saying, “when evaluating projects, we’re only concerned with the relevant incremental...
A financial manager is quotes saying, “when evaluating projects, we’re only concerned with the relevant incremental after tax cash flows. Therefore, because depreciation is a noncash expense, we should ignore its effects when evaluating projects.” Fill in the blanks with the most appropriate word or phrase. The sale of a new bond issue takes place in the ________ markets Equity instruments are traded in the ______markets Short term securities such as treasure bills and banker’s acceptances are bought in the...
1. Which of the following regarding financial statement analysis is false? a) According to the DuPont...
1. Which of the following regarding financial statement analysis is false? a) According to the DuPont identity, Return on Equity is affected by operating efficiency (or profitability), asset use efficiency, and financial leverage. b) We can calculate the market value based measures of firm performance using only financial statements prepared according to GAAP. c) Asset management ratios measure the intensity and efficiency of asset use. d) For common size statements, we divide balance sheet items by total assets and income...
Which of the following is NOT true about financial statements?
5.Which of the following is NOT true about financial statements?the balance sheet reports the financial position of a business at a particular point in timethe income statement reports the net cash received during the period as a result of operating activitiesthe statement of cash flows reports the inflows and outflows of cash for the periodthe statement of stockholders' equity includes information about net income and dividends for the period6.Which of the following best describes the purpose of the balance sheet?summarize...
True/False Answer all questions. Write out the word True or False in the space provided. (...
True/False Answer all questions. Write out the word True or False in the space provided. ( 2 Pts. Ea.) 1. Standard Costs serve as a device for measuring efficiency. 2. The Standard cost is how much a product should cost to manufacture. 3. Standard costs should always be revised when they differ from actual costs. 4. Changes in technology, machinery, or production methods may make past cost data irrelevant when setting standards. 5. Differential revenue is the amount of increase...
To be useful, financial information must be relevant and faithfully represent a business's economic activities. This...
To be useful, financial information must be relevant and faithfully represent a business's economic activities. This requires ethics, beliefs that help us differentiate right from wrong, in the application of underlying accounting concepts or principles. These underlying accounting concepts or principles are known as generally accepted accounting principles (GAAP). GAAP in Malaysia, as well as in many other countries, is based on International Financial Reporting Standards (IFRS). IFRS are issued by the International Accounting Standards Board (ASB). Malaysian Financial Reporting...
II. True/False Questions (2 points each, 20points) 1. Accounting is a system that collects and processes...
II. True/False Questions (2 points each, 20points) 1. Accounting is a system that collects and processes financial information about an organization and reports that information to decision makers. 2. In accounting and reporting for a business entity, the accounting and reporting for the business must be kept separate from other economic affairs of its owners. 3. The accounting period in which service revenue is recognized (i.e., revenue for services rendered) is generally the period in which the cash is collected....
1. The relevant variable a financial manager uses to measure retums is A) net income determined using generally accepted accounting principles. B) earnings per share minus dividends per share. C) cash flows. D) dividends. 2. You are considering the purchase of a common stock that paid a dividend of $2.00 yesterday. You expect this stock to have a growth rate of 15 percent for the next 3 years, resulting in dividends of D1 = $2.30, D2 = $2.645, and D3...
4-1 Using a time line The financial manager at Starbuck Industries is considering an investment that requires an initial outlay of $25,000 and is expected to result in cash inflows of $3,000 at the end of year 1, $6,000 at the end of years 2 and 3, $10,000 at the end of year 4, $8,000 at the end of year 5, and $7,000 at the end of year 6. a. Draw and label a time line depicting the cash flows...
True/False Answer all questions. Write out the word True or False in the space provided. ( 2 Pts. Ea.) 1. Standard Costs serve as a device for measuring efficiency. 2. The Standard cost is how much a product should cost to manufacture. 3. Standard costs should always be revised when they differ from actual costs. 4. Changes in technology, machinery, or production methods may make past cost data irrelevant when setting standards. 5. Differential revenue is the amount of increase...
To be useful, financial information must be relevant and faithfully represent a business's economic activities. This requires ethics, beliefs that help us differentiate right from wrong, in the application of underlying accounting concepts or principles. These underlying accounting concepts or principles are known as generally accepted accounting principles (GAAP). GAAP in Malaysia, as well as in many other countries, is based on International Financial Reporting Standards (IFRS). IFRS are issued by the International Accounting Standards Board (ASB). Malaysian Financial Reporting...
II. True/False Questions (2 points each, 20points) 1. Accounting is a system that collects and processes financial information about an organization and reports that information to decision makers. 2. In accounting and reporting for a business entity, the accounting and reporting for the business must be kept separate from other economic affairs of its owners. 3. The accounting period in which service revenue is recognized (i.e., revenue for services rendered) is generally the period in which the cash is collected....
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