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nay and creditors. appea risky b. It may increase interest rates on borrowing. c. It may cause the company to appear more stable, commanding a higher stock price for new stock listings. d. It may reduce interest rates on borrowing. Question:45 Before issuing a report on the compilation of financial statements of a nonpublic entity, the accountant should:a. Apply analytical procedures to selected financial data to discover any material misstatements. b. Corroborate at least a sample of the assertions management has embodied in the financial statements. c. Inquire of the client's personnel whether the financial statements omit substantially all disclosures. d. Read the financial statements to consider whether the financial statements are free from obvious material errors. Kaffen Company, a ski tuning, and repair shop, opened on November 1, 2013. The company carefully kept track of all its cash receipts and cash payments. The following information is available at the end of the ski…

Which of the following is false? a.   Under GAAP, companies cannot record gains on transactions involving their own shares. b.   Under IFRS, companies cannot record gains on transactions involving their own shares. c.   Under IFRS, the statement of stockholders’ equity is a required statement. d.   Under IFRS, a company records a revaluation surplus when it experiences an increase in the price of its common stock.

Which of the following actions would improve a firm's liquidity?   a.   Selling shares and reducing accounts payable.   b. Buying bonds.                                  c. Selling bonds and increasing cash. d. Both Selling bonds and increasing cash and Selling shares and reducing accounts payable.

* Your answer is incorrect. A company may repurchase its own shares for all of the following reasons, except O to reduce the number of shares issued and thereby increase earnings per share and return on equity. to have additional shares available for use in the acquisition of other companies. O to attempt to influence the market price of the shares. O to reduce the number of shares issued in order to meet debt to equity bank covenant requirements.

Which of the following is a difference between stocks and bonds? Select one: a. cash flows to bondholders are not known and not promised, cash flows to stockholders are known and promised b. companies issue stocks to grow the company and issue debt to pay bills c. required returns on debt are typically lower than required returns on equity d. dividends are legal obligations of the firm; coupons are not. Clear my choice

Statement I. Appropriation reserve is used to restrict earnings available for dividends Statement II. The issuance of stock dividends increases share capital and total shareholders' equity a. Statement I and II are trueb. Statement I and II are falsec. Statement I is true, Statement II is falsed. Statement I is false, Statement II is true

not use ai please

Which of the following statements is FALSE? O A. Public companies typically have access to much larger amounts of capital through the public markets. B. The two advantages of going public are greater liquidity and better access to capital. OC. The process of selling stock to the public for the first time is called a seasoned equity offering (SEO).

Which one of the following statements about ordinary equity is correct? a. Shareholders have a residual claim to the firm's assets. b. Shareholders are repaid an ordinary share's value on the share's maturity date. c. Shareholders' return is always positive. d. Equity that is listed on the ASX must pay a dividend.

[S1] When the entity issues a long-term debt instrument, it exposes itself to solvency risk. [S2] When the board of directors agreed to regularly issue stock dividends, it faces liquidity risk. *a. Both are true.b. Both are false.c. Only S2 is true.d. Only S1 is true.

Which of the following statements is true? Group of answer choices a. Dividend payments are attractive to executives who hold many executive stock options that were awarded to them by their firms b.Executives and other insiders benefit most by being able to tender their shares in an open market repurchase since they usually are privy to information that is not available to the general public                                                 c.Empirical research suggests that small, retail investors prefer stock repurchases to dividend payments d. a firm does not pay dividends, some institutional investors are prohibited from investing it the firmʹs equity

Financial risk refers to the: Multiple Choice   possibility that interest rates will increase.   risk of owning equity securities.   the risk that the share price may not reflect all known information   general business risk of the firm.   risk faced by equity holders of firms with debt.

Which one of the following events must occur before a firm can offer a liquidating dividend? A. Negative equity B.Insolvency declaration C. Asset sale D. Failed bond issue

Stock repurchases occur when a company buys its outstanding stock which is often referred to as treasury stock and is reported as a negative value on the company’s balance sheet. In a share repurchase, firms use excess cash to buy shares back from investors. These shares are to be held in the corporate treasury and resold if the company needs money. There are several approaches to conducting share repurchases. Consider the following situation: The firm announces its intention to buy shares of its own stock, like an ordinary investor, and proceeds to do so.   What method is described in the preceding situation? Auction   Tender offer   Open-market transaction   Direct negotiation     In a taxless world with no brokerage costs, repurchases and dividends have the same effect on shareholder wealth. In the real world, however, repurchases provide more preferable tax treatment than dividends to ordinary investors. Does this mean that firms should always use…

Which of the following decreases total equity? A. A stock split B. Recording Revenue C. The purchase of Treasury Stock D. Issuance of Convertible preferred stock