Indicate whether each of the following statements about financial statement analysis is true or false.Solvency ratios measure a company's short-term debt-paying ability and its financial structure. ______A company with a high debt to assets ratio probably would be considered to have a high level of financial risk. ______The debt to equity ratio and debt to assets ratio are two ways to measure the same relationship. ______From the point of view of stockholders, a decline in the debt to equity ratio is always good news. ______The lower the debt to equity ratio, the higher a company's financial leverage. ______
What will be an ideal response?
Solvency ratios measure a company's short-term debt-paying ability and its financial structure. F
A company with a high debt to assets ratio probably would be considered to have a high level of financial risk. T
The debt to equity ratio and debt to assets ratio are two ways to measure the same relationship. T
From the point of view of stockholders, a decline in the debt to equity ratio is always good news. F
The lower the debt to equity ratio, the higher a company's financial leverage. F
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Assume a government is a special-purpose government engaged in only one governmental activity. Which financial statements would be required?
A. Either government-wide or governmental fund basis statements. B. Statements combining the governmental funds and government-wide statements. C. Government-wide statements only. D. Both government-wide and governmental fund basis statements.
What is the compound amount at the end of a 2-year period on a loan with an original principal of $1,750 at 8% compounded semiannually? Round to the nearest cent after each calculation
A) $2,047.25 B) $2,030.00 C) $2,029.37 D) $2,370.00
Orlando has finished pouring 4,865 cubic feet out of a total of 27,000 cubic feet of concrete. What percent of the job has he completed?
A) 555.5% B) 8.0% C) 18.02% D) 27.5%
Answer the following statements true (T) or false (F)
1. If related taxpayers exchange property qualifying for a like-kind exchange, the properties must be retained for three years after the exchange to prevent recognition of gain resulting from the original exchange on a subsequent disposition of the property. 2. The holding period of like-kind property received in a nontaxable exchange begins on the day of the exchange. 3. The holding period for boot property received begins on the day after the date of the exchange. 4. The involuntary conversion provisions which allow deferral of gain are mandatory. 5. In order to fully defer the gain realized on the involuntary conversion of property, the taxpayer must acquire qualifying replacement property costing at least as much as the cost of the original property.