Assume that U.S. GAAP and IFRS require firms to remeasure the amount of a particular asset from $12 million to $8 million because of economic events. Which of the following journal entries should the company make?
a. Miscellaneous Expense 4,000,000
Asset 4,000,000
b. Other Comprehensive Income 4,000,000
Miscellaneous Revenue 4,000,000
c. Other Comprehensive Income 4,000,000
Asset 4,000,000
d. Asset 4,000,000
Other Comprehensive Income 4,000,000
e. None of these answer choices is correct.
E
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_____ is equal to net profit after taxes divided by total assets.
A. Return on investment B. Economic order quantity C. Target-on-sales D. Retained earnings E. Efficiency maximization
The Clayton Act provides for treble damage recovery for all antitrust violations
Indicate whether the statement is true or false
A company's quarterly income statements show that in the last three quarters both Sales Revenue and net income have been falling. Given this information, which of the following conclusions drawn by users are valid?
A. Investors are likely to conclude that the stock price is likely to rise, making the company more attractive as a potential investment. B. Customers are likely to conclude that the company is struggling; therefore it is permissible to take longer to pay amounts they owe to the company. C. Owners may conclude that the company will be less likely to distribute dividends. D. Creditors are likely to conclude that the risk of lending to the company is declining and might be willing to accept a lower interest rate on loans.