The management's primary goal is stockholder wealth maximization, which, translates into _____.

A. maximizing the value of the firm as measured by the price of its common stock
B. maximizing the earnings per share of the stockholders
C. maximizing the dividends received by stockholders
D. maximizing the net income earned by the company
E. maximizing the managerial compensation (incentives)


Answer: A

Business

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Gordon Company sold 2,000 more units than budgeted of its only product. How will total fixed cost be affected?

A. Decrease by same percentage as sales increase. B. Increase $2,000. C. Increase by same percentage as sales increase. D. Remain constant. E. Decrease $2,000.

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XYZ Corporation borrowed $100,000 for six months from the bank. The rate is prime plus 2 percent. The prime rate was 8.5 percent at the beginning of the loan and changed to 9 percent after two months. This was the only change

How much interest must XYZ corporation pay? A) $2,476 B) $5,417 C) $18,212 D) $21,500

Business

Which of the following journal entries would be used to record direct labor costs in a company having two processing departments (Department A and Department B)?

A.

   
Work in Process-Department AXXX 
Work in Process-Department BXXX 
Salaries and Wages Payable XXX

B.
   
Salaries and Wages ExpenseXXX 
Salaries and Wages Payable XXX

C.
   
Salaries and Wages PayableXXX 
Work in Process XXX

D.
   
Work in ProcessXXX 
Salaries and Wages Payable XXX

Business

In high-velocity automated decision making, humans are eliminated from the decision chain

Indicate whether the statement is true or false

Business