Capital expenditures are costs that are charged to Stockholders' Equity accounts
Indicate whether the statement is true or false
False
You might also like to view...
Ben came storming out of the school staff meeting feeling furious with administrators for rejecting his ideas for the new school fundraiser that he envisioned would be very lucrative for the school. Feeling like he will get nowhere by complaining to the principal, he speaks loudly to the other teachers in the teacher’s room and says he will be looking for jobs in more progressive districts. What kind of dissent is Ben engaging in?
a. spiral dissent b. retaliation dissent c. removed dissent d. lateral dissent
Read the following statements regarding strategic planning to determine which is not accurate.
A. Strategic planning helps ensure marketers will select the right marketing mix strategies. B. Strategic planning is a one-time process completed when a firm outlines its objectives. C. The strategic plan is shaped by the organization's mission. D. Strategic planning can be used on a personal level to help accomplish goals. E. Strategic planning can greatly increase the likelihood of success.
Does a sole proprietor have unlimited liability for any of the liabilities of the business?
A) No B) Yes, but only for foreseeable expenses and liabilities C) Yes, but only for debts if the owner specifically assumed personal liability when the debt was incurred D) Yes, but only for ordinary recurring types of expenses E) Yes, for all debts of the business
According to the free cash flow hypothesis that has been proposed to explain investors' reactions to dividend policy changes, a firm:
A. should distribute earnings based solely on investors' preferences; i.e., whether they prefer current income or future income. B. should pay out all earnings that it can reinvest in acceptable capital budgeting projects. C. should pay dividends when it has cash flows that exceed its capital budgeting needs. D. that retains free cash flows has a higher value than a firm that distributes its free cash flows to stockholders. E. should never distribute its free cash flows, because these funds represent money the firm is free to invest as it pleases .