Finance And Accounting

Question: In breakeven analysis, if fixed costs rise, then the breakeven point will __________.
A
fall

B
rise

C
stay the same

D
none of these

Note: Not available
1. Report
Question: Firm A has a Return on Equity (ROE) equal to 24%, while firm B has a ROE of 15% during the same year. Both firms have a total debt ratio (D/V) equal to 0.8. Firm A has an asset turnover ratio of 0.9, while firm B has an asset turnover ratio equal to 0.4. From this, it can be assessed that ______.
A
Firm A has a higher profit margin than firm B

B
Firm B has a higher profit margin than firm A

C
Firm A and B have the same profit margin

D
Firm A has a higher equity multiplier than firm B

E
more information is needed to say anything about the firm's profit margin

Note: Not available
1. Report
Question: In 2002, the US passed the Sarbanes-Oxley law which ____.
A
did not change any function of the Boards of Directors of publicly traded corporations

B
gave the Financial Accounting Standards Board the oversight responsibility for public auditing firms

C
does not change the responsibilities of independent auditors

D
was developed in response to the accounting scandals at Enron, Tyco, WorldCom and others

E
protects senior executives from prosecution for accounting fraud if they are unaware of its existence

Note: Not available
1. Report
Question: An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the final inventory valuation is ________.
A
FIFO

B
LIFO

C
Retail

D
Weighted-average

Note: Not available
1. Report
Question: What is financial analysis?
A
Comparing ratios using numbers from the income statement and balance sheet

B
Determining a company's financing needs

C
Determining the pricing model for the next year

D
Determining the company's stock price

Note: Not available
1. Report
Question: Which of the following equations properly represents a derivation of the fundamental accounting equation?
A
Assets + liabilities = owner's equity

B
Assets = owner's equity

C
Cash = assets

D
Assets - liabilities = owner's equity

Note: Not available
1. Report
Question: Accounting scandals of the past 5 years ______.
A
resulted in criminal convictions of senior executives at large US corporations like Enron and WorldCom

B
resulted in the criminal conviction of at least one major independent auditing firm

C
resulted in record fines being paid by major brokerage companies to the SEC

D
resulted in the strengthening of the SEC's enforcement powers

E
All of these

Note: Not available
1. Report
Question: CAPM formula calculates which of the following?
A
Present value of equity

B
Expected return on equity

C
Discounted rate on equity

D
Weighted interest rate on equity

Note: Not available
1. Report
Question: Which of the following is an example of an area of business where use of "questionable" ethics is considered a necessity?
A
Attracting and sustaining new customers

B
Aggressive accounting practices that stretch the intent of accounting standards

C
Dealing with other firms who use "questionable" ethics

D
Suppressing information that may negatively affect a firm's reputation

E
None of these statements above is correct

Note: Not available
1. Report
Question: The accounting scandals of recent years ______.
A
had no effect on the level of prices in the US stock markets

B
were a complete surprise to analysts who followed the stocks of the companies involved as they were issuing positive recommendations of the securities to their clients

C
brought out the fact that brokerage firms were promoting stocks to earn hefty fees for underwriting new security issues

D
were of such a small magnitude that the government did not feel it was warranted to prosecute the companies and their officers that were involved

E
have been dismissed as falling within the latitude of judgment for applying GAAP rules

Note: Not available
1. Report

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Question: In breakeven analysis, if fixed costs rise, then the breakeven point will __________.

Question: In 2002, the US passed the Sarbanes-Oxley law which ____.

Question: An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the final inventory valuation is ________.

Question: What is financial analysis?

Question: Which of the following equations properly represents a derivation of the fundamental accounting equation?

Question: Accounting scandals of the past 5 years ______.

Question: CAPM formula calculates which of the following?

Question: Which of the following is an example of an area of business where use of "questionable" ethics is considered a necessity?

Question: The accounting scandals of recent years ______.