Answer the following statements true (T) or false (F)
1. Benchmarking often compares a company against a key competitor or the industry average.
2. No single ratio tells the whole picture of any company's performance.
3. Online financial databases provide data on companies which allows investors to compare the
companies' future earnings.
4. Ratios can be used to analyze a company's ability to pay long-term debt.
5. Working capital measures a business's ability to meet its long-term obligations with its current assets.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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Which of the following statements is false?
a. The method of preparing the operating activities section of a statement of cash flows which adjusts net income to remove the effects of deferrals and accruals for revenues and expenses is the indirect method. b. The method of preparing the operating activities section of a statement of cash flows which reports major classes of gross cash receipts and cash payments for revenues and expenses is the direct method. c. The FASB prefers the direct method of preparing the operating activities section of the statement of cash flows. d. Most companies use the direct method of preparing the operating activities section of the statement of cash flows.
Which of the following is required of an auditor who is testing the fair value of options in share-based compensation?
A. Using the work of the internal audit function. B. Testing the inputs used in the valuation model. C. Becoming an expert in option-pricing. D. Using a specialist.
If a preliminary report concludes that the business situation warrants investment in a new IS, a more comprehensive _____ might be authorized.
Fill in the blank(s) with the appropriate word(s).
On-demand service companies collect a fee from both sellers and buyers who use the platform.
Answer the following statement true (T) or false (F)