Accounting

Equity in a company comes from which two sources?

Equity in a company comes from which two sources?

Equity in a company comes from which two sources?
A) Borrowed funds and earnings.
B) Investments by owners and earnings.
C) Assets and liabilities.
D) Investments by owners and borrowed funds.

KarenSmith   91   2 Replies

KarenSmith

When one company's accounting information is commensurate with the accounting information of ...

When one company's accounting information is commensurate with the accounting information of ...

When one company's accounting information is commensurate with the accounting information of another company it is
A) consistent.
B) comparable.
C) verifiable.
D) predictive.

KarenSmith   130   2 Replies

KarenSmith

For accounting information to have reliability it must posses which ...

For accounting information to have reliability it must posses which ...

For accounting information to have reliability it must posses which qualities?
   Representational
   Verifiability    Faithfulness   Neutrality   Timeliness
A)    Yes   Yes   Yes   No   
B)    Yes   Yes   No   Yes
C)    No   Yes   Yes   No
D)    Yes   No   Yes   

KarenSmith   78   2 Replies

KarenSmith

For accounting information to have relevance it must have at least two of the following ...

For accounting information to have relevance it must have at least two of the following ...

For accounting information to have relevance it must have at least two of the following characteristics
   Timeliness   Predictive value   Feedback value   Verifiability
A)    Yes   Yes   No   Yes
B)    Yes   No   Yes   Yes
C)    Yes   Yes   Yes   No
D)    No

KarenSmith   84   2 Replies

KarenSmith

Materiality relates to something that has no influence on the judgment of a reasonable person.

Materiality relates to something that has no influence on the judgment of a reasonable person.

Materiality relates to something that has no influence on the judgment of a reasonable person.
A) True
B) False

KarenSmith   94   2 Replies

KarenSmith

The going-concern assumption assumes that a business entity will remain in existence for an ...

The going-concern assumption assumes that a business entity will remain in existence for an ...

The going-concern assumption assumes that a business entity will remain in existence for an indefinite period of time.
A) True
B) False

KarenSmith   109   2 Replies

KarenSmith

Equity has three componentsinvestments by owners, comprehensive income and distribution to ...

Equity has three componentsinvestments by owners, comprehensive income and distribution to ...

Equity has three componentsinvestments by owners, comprehensive income and distribution to owners.
A) True
B) False

KarenSmith   84   2 Replies

KarenSmith

E-commerce represents business transactions that are conducted electronically through the Internet ...

E-commerce represents business transactions that are conducted electronically through the Internet ...

E-commerce represents business transactions that are conducted electronically through the Internet and other electronic media.
A) True
B) False

KarenSmith   124   2 Replies

KarenSmith

Many managers realize that small cost savings can be eliminated by the cost of dealing with ...

Many managers realize that small cost savings can be eliminated by the cost of dealing with ...

Many managers realize that small cost savings can be eliminated by the cost of dealing with unprincipled or ruthless companies.
A) True
B) False

KarenSmith   76   2 Replies

KarenSmith

Price fixing occurs when a monopoly takes advantage of consumers by raising prices unfairly because ...

Price fixing occurs when a monopoly takes advantage of consumers by raising prices unfairly because ...

Price fixing occurs when a monopoly takes advantage of consumers by raising prices unfairly because they are the main supplier of a good or service.
A) True
B) False

KarenSmith   98   2 Replies

KarenSmith

There are four basic forms of business organization in the United States.

There are four basic forms of business organization in the United States.

There are four basic forms of business organization in the United States.
A) True
B) False

KarenSmith   121   2 Replies

KarenSmith

Business is the process of producing and distributing goods and services to those who desire them.

Business is the process of producing and distributing goods and services to those who desire them.

Business is the process of producing and distributing goods and services to those who desire them.
A) True
B) False

KarenSmith   159   2 Replies

KarenSmith

Present Value of an Annuity of ...

Present Value of an Annuity of ...

Present Value of an Annuity of 1
Periods   8%   9%   10%
6   4.6229   4.4860   4.3553
7   5.2064   5.0330   4.8685
8   5.7467   5.5349   5.3350
9   6.2469   5.9953   5.7591
10   6.7101   6.4177   6.1446

Present Value of 1
Periods   8%   9%   10%

ʎddɐɥ   95   2 Replies

hol23

Present value of an Annuity of ...

Present value of an Annuity of ...

Present value of an Annuity of 1
   Periods   8%   9%   10%
   1   .9259   .9174   .9091
   2   1.7833   1.7591   1.7355
   3   2.5771   2.5313   2.4869
A company has a 9% blended cost of capital and is considering investing in a project that requires an in

ʎddɐɥ   93   1 Reply

hol23

Present Value of an Annuity of ...

Present Value of an Annuity of ...

Present Value of an Annuity of 1
Periods   8%   9%   10%
6   4.6229   4.4860   4.3553
7   5.2064   5.0330   4.8685
8   5.7467   5.5349   5.3350
9   6.2469   5.9953   5.7591
10   6.7101   6.4177   6.1446

Present Value of 1
Periods   8%   9%   10%

ʎddɐɥ   71   1 Reply

hol23

Future Value of ...

Future Value of ...

Future Value of 1
Periods   5%   7%   9%
1   1.0500   1.0700   1.0900
2   1.1025   1.1449   1.1881
3   1.1576   1.2250   1.2950
4   1.2155   1.3108   1.4116
5   1.2763   1.4026   1.5386
6   1.3401   1.5007   1.6771
7   1.4071   1.6058   1.8280
8   1.4775   

ʎddɐɥ   64   1 Reply

hol23

Lakeshore Fence Company purchased a new table saw for a total installed cost of $75,000. The table ...

Lakeshore Fence Company purchased a new table saw for a total installed cost of $75,000. The table ...

Lakeshore Fence Company purchased a new table saw for a total installed cost of $75,000. The table saw will be depreciated using the straight-line depreciation method. The controller of the company is having trouble deciding on an estimated useful li

ʎddɐɥ   131   1 Reply

hol23

Pro Engine Company purchased a new engine calibration machine on January 3, 2004, for a total cost ...

Pro Engine Company purchased a new engine calibration machine on January 3, 2004, for a total cost ...

Pro Engine Company purchased a new engine calibration machine on January 3, 2004, for a total cost of $540,000. The calibration machine has an estimated useful life to the company of five years. Pro Engine thinks it can sell the used machine for $65,

ʎddɐɥ   142   1 Reply

hol23

In the decision making process to replace old equipment, the purchase cost of the new and old ...

In the decision making process to replace old equipment, the purchase cost of the new and old ...

In the decision making process to replace old equipment, the purchase cost of the new and old equipment is known as
A) fixed costs.
B) start-up costs.
C) operating costs.
D) shutdown costs.

ʎddɐɥ   110   1 Reply

hol23

In the decision making process to replace old equipment, the maintenance cost of the new and old ...

In the decision making process to replace old equipment, the maintenance cost of the new and old ...

In the decision making process to replace old equipment, the maintenance cost of the new and old equipment is known as
A) fixed costs.
B) shutdown costs.
C) start-up costs.
D) operating costs.

ʎddɐɥ   100   1 Reply

hol23

Using the prior year's budget or actual results to build the new operating budget, this budgeting ...

Using the prior year's budget or actual results to build the new operating budget, this budgeting ...

Using the prior year's budget or actual results to build the new operating budget, this budgeting approach is
A) zero-based budgeting.
B) perpetual budgeting.
C) incremental budgeting.
D) participative budgeting.

ʎddɐɥ   103   1 Reply

hol23

For a net cash flow to be relevant it must be in the

For a net cash flow to be relevant it must be in the

For a net cash flow to be relevant it must be in the
A) past and there must be a difference between the cash flows among the alternative choices.
B) future and there must be a difference between the cash flows among the alternative choices.

ʎddɐɥ   65   1 Reply

hol23

What is the present value of cash inflows minus the present value of cash outflows known as?

What is the present value of cash inflows minus the present value of cash outflows known as?

What is the present value of cash inflows minus the present value of cash outflows known as?
A) Profitability index.
B) Net present value.
C) Simple interest.
D) Internal rate of return.

ʎddɐɥ   95   1 Reply

hol23

Which table would you use if a project's cash inflow occurs unevenly at the end of each of the next ...

Which table would you use if a project's cash inflow occurs unevenly at the end of each of the next ...

Which table would you use if a project's cash inflow occurs unevenly at the end of each of the next 5 years?
A) Future value of an annuity of $1 for n payments.
B) Future value of $1 due in n periods.
C) Present value of $1 due in

ʎddɐɥ   121   1 Reply

hol23

If the net present value of a proposed capital project is a positive $10,045 that indicates that the ...

If the net present value of a proposed capital project is a positive $10,045 that indicates that the ...

If the net present value of a proposed capital project is a positive $10,045 that indicates that the project's return
A) exceeds the company's blended cost of capital.
B) exceeds the company's cost of debt capital.
C) wi

ʎddɐɥ   95   1 Reply

hol23

Present value of 1Periods4%5%6%1.9615.9524.94342.9246.9070.89003.8890.8638.8396A company has a 6% ...

Present value of 1Periods4%5%6%1.9615.9524.94342.9246.9070.89003.8890.8638.8396A company has a 6% ...

Present value of 1
   Periods   4%   5%   6%
   1   .9615   .9524   .9434
   2   .9246   .9070   .8900
   3   .8890   .8638   .8396
A company has a 6% blended cost of capital and is considering investing in a project that requires an initial cash outlay of

ʎddɐɥ   85   1 Reply

hol23

The following information is provided for two acceptable projects:Project 1Project 2PV of ...

The following information is provided for two acceptable projects:Project 1Project 2PV of ...

The following information is provided for two acceptable projects:
   Project 1   Project 2
PV of inflows   $97,500   $153,500
PV of outflows   $95,000   $150,000
What is the profitability index for Project 1 and Project 2, respectively?

ʎddɐɥ   94   1 Reply

hol23

A primary motivation for entrepreneurs to engage in a business activity is to serve the needs of ...

A primary motivation for entrepreneurs to engage in a business activity is to serve the needs of ...

A primary motivation for entrepreneurs to engage in a business activity is to serve the needs of society.
A) True
B) False

ʎddɐɥ   110   1 Reply

hol23

Manufacturing is the business activity of selling finished goods produced by another business.

Manufacturing is the business activity of selling finished goods produced by another business.

Manufacturing is the business activity of selling finished goods produced by another business.
A) True
B) False

ʎddɐɥ   163   1 Reply

hol23

A hybrid company is a company that participates significantly in more than one type of business ...

A hybrid company is a company that participates significantly in more than one type of business ...

A hybrid company is a company that participates significantly in more than one type of business activity.
A) True
B) False

ʎddɐɥ   178   1 Reply

hol23

In a business-to-consumer environment, relationship marketing seeks to create optimum customer ...

In a business-to-consumer environment, relationship marketing seeks to create optimum customer ...

In a business-to-consumer environment, relationship marketing seeks to create optimum customer satisfaction to minimize sales.
A) True
B) False

ʎddɐɥ   123   1 Reply

hol23

The historical cost principle requires the balance sheet items to be reported at acquisition cost ...

The historical cost principle requires the balance sheet items to be reported at acquisition cost ...

The historical cost principle requires the balance sheet items to be reported at acquisition cost rather than at current value.
A) True
B) False

ʎddɐɥ   117   1 Reply

hol23

Financial accounting information should be useful to stockholders, potential investors, creditors ...

Financial accounting information should be useful to stockholders, potential investors, creditors ...

Financial accounting information should be useful to stockholders, potential investors, creditors and other users in assessing the
A) uncertainty, timing, and amounts of future debt available to pay such things as expenses and operating costs.

ʎddɐɥ   91   1 Reply

hol23

The structural component(s) of the conceptual framework areQualitativePrinciples,Characteristics ...

The structural component(s) of the conceptual framework areQualitativePrinciples,Characteristics ...

The structural component(s) of the conceptual framework are
   Qualitative   Principles,
   Characteristics of   Accounting   Assumptions
   Objectives   Accounting Information   Elements   and Constraints
A)    Yes   Yes   No   Yes
B)    Yes   Yes   Yes   Ye

ʎddɐɥ   91   1 Reply

hol23

Presented below is selected data for Grape Wine, Inc.:20062005Net sales$1,519,400$1,592,500Income ...

Presented below is selected data for Grape Wine, Inc.:20062005Net sales$1,519,400$1,592,500Income ...

Presented below is selected data for Grape Wine, Inc.:
   2006   2005
Net sales   $1,519,400   $1,592,500
Income from operations   138,200   101,000
Income taxes    46,000   28,300
Interest expense   2,400   8,300
Total assets   543,700   540,4

ʎddɐɥ   85   1 Reply

hol23

Presented below is selected data for Parks, Inc.: 2005 2004 Cash$ 176,400$ ...

Presented below is selected data for Parks, Inc.: 2005 2004 Cash$ 176,400$ ...

Presented below is selected data for Parks, Inc.:
        2005              2004     
   Cash   $ 176,400   $ 106,600
   Accounts receivable   117,800   121,100
   Merchandise inventory   262,200   319,700

ʎddɐɥ   87   1 Reply

hol23

Below is a five-year comparative analysis of Green Thumb Company's coverage and debt ...

Below is a five-year comparative analysis of Green Thumb Company's coverage and debt ...

Below is a five-year comparative analysis of Green Thumb Company's coverage and debt ratios:
   2006   2005   2004   2003   2002
Coverage ratio   6.76   5.95   4.65   3.75   2.45
Debt ratio   55.0%   65.0%   73.5%   76.4%   78.3%

What does this anal

ʎddɐɥ   117   1 Reply

hol23

The regression analysis equation is Y = a + bX.

The regression analysis equation is Y = a + bX.

The regression analysis equation is Y = a + bX.
A) True
B) False

ʎddɐɥ   80   1 Reply

hol23

An example of an irrelevant cost is a past expenditure.

An example of an irrelevant cost is a past expenditure.

An example of an irrelevant cost is a past expenditure.
A) True
B) False

ʎddɐɥ   77   1 Reply

hol23

Relevant costs and revenues are qualitative factors that affect business decisions.

Relevant costs and revenues are qualitative factors that affect business decisions.

Relevant costs and revenues are qualitative factors that affect business decisions.
A) True
B) False

ʎddɐɥ   122   1 Reply

hol23