Indicate whether each of the following statements is true or false. Questions with more than one
answer selected will be marked as incorrect.
1.Under IFRS, contingent liabilities should be recorded in the accounts if there is a remote
possibility that the contingency will actually occur.
True
False
2. The classification of a liability as current or non-current is important because it may affect the
evaluation of a company’s liquidity.
True
False
3. The liability of a shareholder is usually limited to the shareholder’s investment in the
corporation.
True
False
4. The sale of shares in a corporation by one shareholder to another affects the total capital of
the corporation..
True
False
5. Contributed capital is the amount shareholders paid or contributed to the corporation in
exchange for shares of ownership.
True
False
6. The liability for a cash dividend is recorded on the date of record, because it is on that date
that the shareholders who will receive the dividend are identified.
True
False
7. Declaration and distribution of a stock dividend does not affect the total amount of
shareholders’ equity.
True
False
8. The current ratio should not be interpreted on its own without also looking at the receivables
turnover and inventory turnover ratios.
True
False
9. The receivables turnover ratio is useful in assessing the profitability of receivables.
True
False
10. The price-earnings ratio reflects investors’ expectations about the future profitability of the
company.
True
False
1.False
2.True
3.True
4.False
5.true
6.true
7.false
8.true
9.true
10.True
As per the requirements of the question i have provided the only answers without reasons
Indicate whether each of the following statements is true or false. Questions with more than one...
True/False Indicate whether the statement is true or false _____ 3. "Piercing the corporate veil" will result in personal liability of shareholders. _____ 5. Under Subchapter S of the Internal Revenue Code, a corporation's income is taxed only at the shareholder level. _____ 6. The doctrine of ultra vires is of more significance today than it has been in the past. _____ 7. A corporation has no constitutional protection against unreasonable searches and seizures.
Indicate whether each of the following statements is true or false. 1. The corporation is an entity separate and distinct from its owners 2. The liability of stockholders is normally limited to their investment in the corporation.
please answer whether the following are true or false TRUE OR FALSE A TRUE B- FALSE 1. Given two possible legal ways of doing a business transaction, one is legally obligated to do the deal in the way that results in the higher income tax. 2. The 100% owner of a Limited Liability Company is personally liable for all debts of the LLC 3. A "C" corporation is allowed an "ordinary and necessary" deduction for dividends paid to shareholders. 4....
Requirement 1. Indicate whether each of the following statements is true or false. For each false statement, explain why it is false. Use Tor F to indicate whether each of the following statements is true or false. Change each false statement into one that is true. 1. A large cash balance is the best evidence of previous profitable operations. 2. Accounts receivable should be classified as a liability. 3. Machinery used in the business should be recorded at replacement cost....
Indicate what is meant by the following ratio calculations. 1. Liquidity Ratios Current Ratio = Current Assets Current Liabilities = 515800 626900 = 0.82 : 1 Quick Ratio = Quick Assets Current Liabilities = 42700 + 205800 626900 = 0.40 Cash Ratio = Cash & Cash Equivalents Current Liabilities = 42700 626900 = 0.0681 : 1 2. Turnover / Activity Ratios Inventory Turnover = COGS Average Inventories...
Question 2: Indicate whether each of the following statements is true or false and explain concisely why. 2. In a OLS output ġ=.5+1.2log(x), the slope 1.2 is correctly interpreted as "a 1.2 percent increase in x is associated with a 1 unit increase in y, on average."
Question 1 Which of the following is an incorrect statement regarding the tax consequences of a § 306 stock disposition? In a sale of § 306 stock, the shareholder generally recognizes ordinary income equal to the fair market value of the preferred stock on the date it was acquired in the stock dividend. No loss is recognized on a sale of § 306 stock. The issuing corporation’s E & P is not reduced by a sale of § 306 stock....
II. TRUE/ FALSE Indicate whether the statement below is true or false ( 1 Point each) The constant growth model is an approach to dividend valuation that assumes a constant future dividend. 2) The free cash flow valuation model is based on the same principle as the P/E valuation approach; that is, the value of a share of stock is the present value of future cash flows 3) In common stock valuation, any action taken by the financial manager that...
CHAPTER NINE True-False: The following statements are either true or false. Place a (T) in the parentheses before each true statement and an before each false statement. (F) An example of an estimated liability is a warranty. 2. 1. ) Contingent liabilities are potential obligations that depend on a future event arising from a past event or transaction 3. (F) Federal unemployment taxes are withheld from employees' wages at the rate of 1.45% on the first $61,200 earned. 4. (TSocial...
Which one of the following statements is correct? The preemptive right grants shareholders the right to purchase additional shares in the company prior to shares available for public. Dividends become a liability of the firm on the date of payment. The stated value of most preferred stock is $1,000 per share. A market maker on the floor of an exchange is called a trader. Under major voting, each share of stock allows the shareholder one vote, and each position on...