Ans. Goodwill is an intangible asset. Capitalisation of good will increases the companies non- current asset.
Capitalisation of goodwill does not have affect on liabilities and net income. Further return on assets decreases as asstes increase and net income remains same.
So correct answer is B capitalising Goodwill increases reported non current asset of the company.
All things being equal, a capitalization of internally generated Goodwill would: Increase companies liabilities. Increase the...
3. (Dividends and share repurchases: Basics) All other things being equal, the payment of an internally financed cash dividend is most likely to result in (a) a lower current ratio (b) a higher current ratio (c) the same current ratio
All other things being equal, the payment of an internally financed cash dividend is most likely to result in: a) a lower current ratio b) a higher current ratio c) the same current ratio
Assume that the British government imposes quotas on imports by British companies. Other things being equal, the U.S. demand for pounds would ____, the supply of pounds for sale would ____, and the equilibrium value of the pound would ____. a. decrease; increase; decrease b. remain unchanged; decrease; increase c. remain unchanged; increase; decrease d. increase; increase; increase
All other things being equal, an increase in the interest rate that the company must pay on its long term debt will have an impact on which of the following ratios? a) Return on equity (ROE). V Net Income Alorage SE. b) Return on total assets (ROA) NI + Interest Expense xl- Tax Rate Net profit margin percentage- Average d) a) and b). Total Assets / Net Incomev a) and c). Net Sales
An increase in Days Inventory Held, all other things equal, would ___________ the working capital cycle and reflect ________________ liquidity decrease; increased decrease; decreased increase; decreased increase; increased
All other things equal, if a division's traceable fixed expenses increase: A) the division's segment margin will increase. B) the overall company net operating income will decrease. C) the division's contribution margin will decrease. D) the division's sales volume will increase.
5. Highly leveraged firms have higher ROE than lower leveraged firms. 6. All things equal, the higher a company's inventory turnover rate, the better. 7. All else being equal, a higher financial leverage will increase a company's debt rating and decrease the interest rate it must pay. 8. Vertical analysis examines changes in financial data across time. 9. A current ratio greater than 1.0 is generally desirable for a company. 10. Return on assets can be disaggregated into profit margin...
Other things being equal, what happens to the current price of a bond if the bond has a larger par value? Decrease. Increase. No change. Cannot be determined without knowing the market interest rate.
All things being equal, a decrease in the corporate tax rate will cause the company to be financed with more debt. True False
1) An increase in days sales outstanding (DSO), all other things equal, would ________ the cash conversion period and reflect _________ liquidity. a) increase, increased b) increase, decreased c) decrease, increased d) decrease, decreased 2) Torque Manufacturing forecasts that its production will require 250,000 tons of bauxite over its planning period. Demand for Torque's products is stable over time. Ordering costs amount to an average of $25 per order. Holding costs are estimated at $2 per ton of bauxite. EOQ...