A bond's yield to maturity computation assumes that all interest payments are reinvested at the same rate and also that the bond is held to maturity
Indicate whether the statement is true or false.
Answer: TRUE
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A firm might have a low dividend payout ratio if it were planning a major expansion
Indicate whether the statement is true or false
The balance sheet indicates that Paul Corporation owns 40 percent of the common stock of Sun Company. During Year 2, Sun Company earned $12,000 and paid $4,000 of dividends. Paul Corporation made the following entries on its books during the year. Investment in Company B . . . . . . . . . . . . . . . . . . . . . 4,800 Equity in Earnings of Affiliate . . . . . . . . . . . . . . . . . . . . . . .
. . 4,800 Net income of Paul Corporation includes $4,800 of equity income. It received only $1,600 of cash. The T-account work sheet for preparing the statement of cash flows a. adds $3,200 to net income in deriving cash from operations. b. subtracts $1,600 from net income in deriving cash from operations. c. adds $1,600 to net income in deriving cash from operations. d. subtracts $3,200 from net income in deriving cash from operations. e. adds $3,200 to retained earnings in deriving cash from investing.
The proper treatment of a deposit recorded by the business but not yet recorded by the bank is to report the deposit on the bank reconciliation as a(n):
a. addition to the book balance per checkbook. b. deduction to the book balance per checkbook. c. addition to the balance per bank statement. d. deduction to the balance per bank statement. e. none of the above.
If the law requires that a contract be in writing, failure of such a contract to be in writing does not impact its enforcement
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