HW

Which of the following statements is CORRECT?  A. Net working capital is defined as current assets minus the difference between current liabilities and notes payable, and any increase in the current ratio automatically indicates that net working capital has increased B. If a company follows a policy of "matching maturities," this means that it matches its use of common stock with its use of long-term debt as opposed to short-term debt. C. Net working capital is defined as current assets minus the difference between current liabilities and notes payable, and any decrease in the current ratio automatically indicates that net working capital has decreased. D. Credit policy has an impact on working capital because it influences both sales and the time before receivables are collected.

Please answer with only  simple explanation thank you!   1.) A gain or loss from one of the following transactions should not be  included in determining income:   receipt of interest from bank deposits   sale of treasury shares   sale of plant and equipment   sale of product   2.) Corporation’s retirement of its treasury shares resulted in the par value exceeding the cost. The difference should be:   debited to APIC to the extent of the credit when the stock was issued   debited to retained earnings   credited to APIC from previous treasury stock transactions   credited to APIC relating to the same issue   3.) Which of the following should be reported for capital stock?   the shares authorized   the shares issued   the shares outstanding   all of these   4.) Which of the following would be classified in a different major section of a balance sheet from the others?   capital stock…

Some people think that a company’s retained earnings rep-resent cash reserved for the payment of dividends. Are they correct? Explain.

1. which of the following transactions and events would result in a deterioration in EBIT Profit Margin? a. selling goods on credit at the normal mark-up b. issuing shares for cash c. the consumption of a prepaid expense from the previous period d. A and B only e. A and C only f. B and C only g. All of the above h. None of the above   2. which of the following transactions and events would result in an improvement in Dividends per share  a. the recognition of income tax expense owing at the end of the period  b. the receipt of cash for dividends from other entities  (increase financing cash flow) c. A and B only  d. A and C only  e. B and C only  f. All of the above  g. None of the above    3. which of the following transactions and events would result in an improvement in Days Purchases Outstanding  a. an adjustment for wages owing at the end of the period b. the identification of an uninsured inventory loss c. selling goods for cash at the normal mark-up d. A and B only e. A and C…

A gain or loss from one of the following transactions should not be included in determining income: a. receipt of interest from bank depositsb. sale of treasury sharesc. sale of plant and equipmentd. sale of product T Corporation’s retirement of its treasury shares resulted in the par value exceeding the cost. The difference should be: a. debited to APIC to the extent of the credit when the stock was issuedb. debited to retained earningsc. credited to APIC from previous treasury stock transactionsd. credited to APIC relating to the same issue Which of the following should be reported for capital stock? a. the shares authorizedb. the shares issuedc. the shares outstandingd. all of these

How a firm splits its income between retained earnings and dividends does not affects its rate of growth, which is determine by the firms basic earning power. True or false ?

Which of the following is correct? Select one: a. Unearned revenues are considered increases to stockholders' equity. b. Working capital is measured as current liabilities minus current assets. C. Unearned revenues will eventually become revenue earned. d. Working capital increases when a company pays the principal on a long-term note.

When is the return on assets equal to the return on equity?  a. When the company issues equal amounts of long-term debt and common stock. b. When the company only issues equity to finance its borrowing. c. When the current ratio of the company equals 1. d. When the company issues no dividends for a given time period.

If a firm’s common-size income statement shows that the earnings after tax percentage is too low, the firm may have spent too much money on ____. a. total assets as a percentage of long-term liabilities b. cost of sales as a percentage of net sales c. taxes paid as a percentage of stockholders’ equity d. expenses as a percentage of current assets

Measures of a company's liquidity are concerned with the frequency and amounts of dividend payments, true or false?

Firm A reports an increase in earnings per share; Firm B reports a decrease in earnings per share. Is this unconditionally informative about each firm’s performance? If not, why is earnings per share so commonly discussed in the financial press?                 Search modes

i) Central to the previous calculations of company valuations are the payment of dividends. The following terms relating to dividend payment chronology. Define each term in a single sentence • Ex-dividend date• Record date • Declaration date• Payment date • Cum-dividend period ii) Give two reasons why a company my distribute cash to shareholders via a buyback rather than a dividend

Explain why the following statement is true: The retained earnings account reportedon the balance sheet does not represent cash and is not “available” for dividend paymentsor anything else.

Which of the following statements is CORRECT? O The more depreciation a firm reports, the higher its tax bill, other things held constant. O People sometimes talk about the firm's net cash flow, which is shown as the lowest entry on the income statement, hence it is often called "the bottom line." O Depreciation and amortization are not cash charges, so neither of them has an effect on a firm's reported profits. O Net cash flow (NCF) is often defined as follows: Net Cash Flow = Net Income + Depreciation and Amortization Charges. O Depreciation reduces a firm's cash balance, so an increase in depreciation would normally lead to a reduction in the firm's net cash flow.

Explain whether each of the following balance sheet items increases, reduces, or has no directeffect on a company’s ability to pay its obligations as they come due. Explain your reasoning.a. Cash.b. Accounts Payable.c. Accounts Receivable.d. Capital Stock.

19.  Which of the following statements relating to earnings per share is not true? __________ It is an often-reported measure of the potential return to stockholders.   It is a financial measure.   It is a cash measure.   It is based on the accrual basis of accounting.

Which of the following is FALSE regarding the financial statements?

Which of the following would result in the RETURN OF ASSETS for an accounting entity deteriorating.  Answer Can be all of them, none of them or any combination of them. 1. Accrued interest revenue is adjusted 2. Share market price of the entity's shares increases 3.  Cash receipt from a customer for amounts owing which was previously sold on credit

Which of the following statements is correct?   a. Any forecast of financial requirements involves determining how much money the firm will need and is obtained by adding together increases in assets and spontaneous liabilities and subtracting operating income.   b. The percentage of sales method of forecasting financial needs requires only a forecast of the firm's balance sheet. Although a forecasted income statement helps clarify the need, it is not essential to the percentage of sales method.   c. Because dividends are paid after taxes from retained earnings, dividends are not included in the percentage of sales method of forecasting.   d. Financing feedbacks describe the fact that interest must be paid on the debt used to help finance AFN and dividends must be paid on the shares issued to raise the equity part of the AFN. These payments would lower the net income and retained earnings shown in the projected financial statements.   e. All of the statements above are false.

Which of the following is true if a company reports an unrealized increase in fair value of available-for-sale securities using an allowance account? The spreadsheet and statement of cash flows do not reflect this transaction. The spreadsheet accounts for this transaction, but it is not reflected in the statement of cash flows. The spreadsheet does not account for this transaction, but it is reflected in the statement of cash flows. Both the spreadsheet and the statement of cash flows reflect this transaction.

Which of the following statements is FALSE?i. Using the payback rule, you can calculate how much profits are earned over the investment period.ii. The IRR is sensitive to the timing of the cash flows.iii. Shareholders have the first claim on the cash flows of the company.