Assume that a firm's book value at the beginning of the year is $12,500 and that the firm reports net income of $3,200 and pays dividends of $1,100 . What will the firm's book value at the end of the year?
a. $2,100
b. $15,700
c. $14,600
d. $16,800
C
$12,500 + $3,200 - $1,100
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Language that employs expressions and words that are broad enough to include rather than exclude particular groups of people is called ______ language.
a. inclusive b. expressive c. relational d. cultural
Which of the following statements is false?
A) Debenture bonds are secured liabilities B) Debenture bonds are issued based upon the credit rating of the company C) A company must have a long history of profitability to issue debenture bonds. D) A company must have strong positive cash flows to issue debenture bonds.
At one time, scholars believed that attitudes were ________
A) actions people take based on an opinion B) predispositions to think a certain way about a certain topic C) judgments people make after people take action D) responses people have to strong opinions
Sprinter Airlines (Sprinter) needs additional aircraft to expand internationally, and it could borrow the needed funds and purchase the aircraft. This arrangement places additional debt on the balance sheet. Instead, Sprinter signs an lease agreement in which it agrees to pay the owner of the aircraft certain amounts each year for 12 years. The aircraft has an estimated service life of 18 years
Sprinter paints its name on the aircraft, uses the aircraft in operations, and makes the required lease payments. Which of the following is not true? a. Sprinter receives benefits when it uses the aircraft, not when it initially signs the lease. b. Sprinter has future benefits, not past or current benefits. c. Sprinter obtains financing for its flight equipment without showing a liability on the balance sheet. d. Sprinter has entered into an operating lease that is an executory contract. e. Sprinter has entered into an financing lease that is recorded as an asset purchase and financing transaction.