Return on net worth equals return on assets times financial leverage
Indicate whether the statement is true or false
True
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As a general rule of thumb, the average number of days that receivables are on the books should not be greater than ____________________ the regular length of the credit period
Fill in the blank(s) with correct word
Having only one person authorized to both prepare and sign checks is a violation of what internal control procedure?
a. Proper authorizations b. Independent review and appraisal c. Independent verifications d. Segregation of duties
The following balance sheet information is provided for Santana Company for Year 2:Assets Cash$5,400 Accounts receivable 15,500 Inventory 18,000 Prepaid expenses 1,600 Plant and equipment, net of depreciation 20,200 Land 19,950 Total assets$80,650 Liabilities and Stockholders' Equity Accounts payable$4,500 Salaries payable 11,500 Bonds payable (due in ten years) 19,000 Common stock, no par 30,000 Retained earnings 15,650 Total liabilities and stockholders' equity$80,650 What is the company's debt to equity ratio? (Rounded to nearest whole percent.)
A. 42% B. 77% C. 130% D. 43%
Common-size statements ________.
A) allow the users to compare numbers in relative terms rather than absolute amounts B) report dollar amounts and percentages C) create a dollar value bias D) show the same percentages that appear in a horizontal analysis