Which of the following is not a true statement?
A. The times interest earned ratio compares interest expense with income available to pay interest charges.
B. Leverage enables a company to earn a higher return using debt than without debt.
C. The debt to equity ratio measures a company's risk and is calculated as total liabilities divided by stockholders' equity.
D. Return on assets is calculated as net income divided by the ending balance for total assets.
Answer: D
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Tuning out information that does not support one's core belief system is an example of what?
A) Misinterpretation B) Passive listening C) Selective perception D) Defensive listening E) Selective listening
The FASB's conceptual framework does not include which of the following as financial reporting objectives?
a. Provide information useful for making irrational investment and credit decisions. b. Provide information to help current and potential investors and creditors assess the amount, timing, and uncertainty of past cash flows. c. Provide information about the economic resources of a firm's customers and the claims on those resources. d. Provide information about a firm's expected operating performance during the next period. e. all of the above
Use question marks to indicate questions ____________________
a. within a question b. within a sentence c. of mathematical function d. that are really sentences
Roddam Corporation produces and sells two products. Data concerning those products for the most recent month appear below: Product K09EProduct G17BSales$28,000 $38,000 Variable expenses$11,200 $8,600 The fixed expenses of the entire company were $41,970. If the sales mix were to shift toward Product K09E with total dollar sales remaining constant, the overall break-even point for the entire company:
A. would increase. B. could increase or decrease. C. would decrease. D. would not change.