The higher the investor's required rate of return, the higher the P/E ratio will be
Indicate whether this statement is true or false.
Answer: FALSE
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Which of the following would not be a source of 360-degree feedback?
a. bosses b. subrodinates c. peers d. spouses and/or siblings
Which of the following postulates states that unless there is evidence to the contrary, it is assumed that the firm will continue indefinitely?
a. Entities b. Time period c. Consistency d. Going concern
The method of revenue recognition where the seller collects parts of the selling price in cash and at the same time recognizes as expenses each period the same portion of the cost of goods or services sold as the portion of total revenues recognized is called the
a. completed contract method. b. direct payment method. c. installment method. d. cost-recovery-first method. e. cost-recovery-last method.
When firms have obligations that do not meet the formal definition of a liability, U.S. GAAP require that firms
a. disclose information about such obligations in notes to the financial statements. b. highlight such arrangements in the Management Discussion and Analysis section. c. have the auditor address such matters in a separate paragraph in the independent auditor's report accompanying the financial statements. d. do not mention the obligation because they are not valid liabilities and to do otherwise would mislead the readers of the financial statements. e. none of the above.