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Which of the following is NOT correct regarding the rate of return on assets? a. The rate of return on assets measures management’s ability to productively employ all its resources. b. The rate of return on assets measures the return on all assets used regardless of how the assets are financed. c. The rate of return on assets is a measure of profitability. d. The rate of return on assets measures the return on the investment made by the owners of the entity. is B the correct answer?

In a DuPont analysis, what are the components of return on assets?a. Net Profit Margin Ratio and Debt Ratiob. Net Profit Margin Ratio and Leverage Ratioc. Net Profit Margin Ratio and Asset Turnover Ratiod. Asset Turnover Ratio and Leverage Ratio

Asset utilization ratios A. relate assets to sales. B. measure how much cash is available for reinvestment into current assets. C. are most important to stockholders. D. measures the firm's ability to generate profit on sales. E. none of the above

Which of the following statements is true for historical cost valuations? (Select one or more)   a. Present value of cash flows using historical interest rates is an item in which cash receipts or cash payments will occur over time, these future cash flows are then discounted at the interest rate in effect at the time of the initial transaction. Balance sheet examples include notes receivable and notes payable.   b. Acquisition cost is the amount paid initially to acquire the asset, examples include prepayments, land, and intangibles with indefinite lives.   c. Acquisition cost is the amount paid initially to acquire the asset, examples include amounts invested in research and development for intellectual property.   d. Adjusted acquisition cost is the amount paid initially to acquire an asset less accumulated depreciation and amortization, examples include equipment and intangible assets with limited lives.

When using EBITDA instead of net income to measure a firm's why are operational characteristics, depreciation and amortization expense added back? O A. Depreciation and amortization expense are superficial. OB. Depreciation and amortization expense represent expenses from an accounting standpoint but don't represent actual cash outflows. O C. Depreciation and amortization expense are random numbers and can be ignored. D. Depreciation and amortization expense represent an insignificant cash outflow for a business.

Which of the following ratios measures short-term solvency? a. Current ratio b. Creditors' equity to total assets c. Return on investment d. Total asset turnover

QUESTION 1 Which of the following events will NOT increase the demand for assets?   A. Decline in wealth   B. Increase in the asset return relative to other assets   C. Increase in asset liquidity   D. Decrease in the asset riskiness relative to other assets

1.How can exit value accounting be used to assess the financial risk of a balance sheet.     2.Evaluate the argument that a mixed or piecemeal approach to standard setting is required in order to ‘better’ measure profit and financial position.     3.Explain how both exit price and current entry price accounting systems can be used to make decisions about retaining or selling assets.

The primary measurement basis is   A.The current market price if the asset currently held was sold on the open market.   B. The current market price if the asset held was purchased on the open market.   C. The present value of the cash flows that the asset is expected to generate.   D. The market price at the date the asset was acquired.

Fair Value Accounting and Valuation in 3 Steps:   Asset or Liability Identification: The first step involves identifying the specific assets or liabilities that will be measured at fair value. This could include financial instruments, tangible assets, intangible assets, or other items on the balance sheet.   Market-Based Valuation Techniques: Fair value is determined using market-based valuation techniques. This may involve assessing current market prices, recent transactions, or employing valuation models such as discounted cash flows, comparable sales, or option pricing models.   Consistent Application and Disclosure: Fair value accounting requires consistent application of valuation methods across reporting periods. Additionally, transparency and disclosure are crucial, with companies providing detailed information about the inputs, assumptions, and methods used in fair value measurements.   Objective Type Question:   In fair value accounting, what is the primary purpose of…

The current asset financing policy that calls for matching the maturities of assets with the maturities of liabilities is known as the a. permanent current ratio approach b. temporary net working capital approach C. conservative approach d. self-liquidating approach e. aggressive approach

Why does an increase in the ratio of current assets to total assets decrease both profits and risk as measured by net working capital? How does changes in the ratio of current liabilities to total assets affect profitability and risk?

If your goal is to determine how effective a firm in managing its assets, you would examine O Profit margin, Current ratio, Debt ratio O Price-earnings ratio, Times-interest-earned ratio, Operating Margin O Inventory turnover, Receivables turnover, Assets turnover O Quick ratio, Debt ratio, Times-interest-earned ratio

In a theoretical sense, the financial value of any asset is the present value of: Select one: A. Its past dividends B. Its expected cash flows C. Its expected sales price D. Its operating earnings

If a company has asset classes that include short-term and long-term investments, what criteria should they employ to determine if an asset is reported as a cash equivalent or an investment on their classified balance sheet?  Examples needed and support using GAAP

how value drivers (Return on Equity, Net Profit Margin, and Total Asset Turnover) are related to financial statement analysis?

b. Disregard the assumptions in Part a. What is the depreciable basis? What are the annual depreciation expenses? c. Calculate the annual sales revenues and costs (other than depreciation). Why is it important to include inflation when estimating cash flows? d. Calculate annual net operating profit after sales (NOPAT). Then calculate the operating cash flows.

6.On a statement of financial affairs, a company's liabilities should be valued at Select one: a.the present value of future cash flows. b.the amount expected to be paid if the company could honor its debts. c.net realizable value. d.the amount required for settlement. e.replacement cost.

Explain how the DuPont system of analysis breaks down return on assets?