A company is expected to have a value of $142,857 at the start of next period and investors require a 14 percent return on equity capital. Using the assumptions of the price-earnings ratio, what would be the company's earnings for the current year?
a. $20,000
b. $14,286
c. $2,800
d. $12,500
A
[1/.14] *x = $142,857
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Consider the following costs: I. The cost of electricity which is used to power machinery and light the plant. II. Depreciation on the building which houses both the factory and the sales office. Which of the following statements is true?
a. Only statement I is an example of a semivariable cost. b. Only statement II is an example of a semivariable cost. c. Both statements I and I are examples of semivariable costs. d. Neither statement I nor II is an example of a semivariable cost.
The revenue recognition principle states that:
A. Revenue should be recognized in the period goods and services are provided. B. Revenue should be recognized in the period the cash is received. C. Revenue should be recognized in the balance sheet. D. Revenue is a component of common stock.
The Edward M. Kennedy Serve America Act created the ______.
A. Social Innovation Fund B. government grant given to Ashoka C. presidential summit on entrepreneurship D. Corporation for National and Community Service
A transfer price is the price charged for a component by the selling division to the buying division of the same company
Indicate whether the statement is true or false