Answer the following statements true (T) or false (F)
1. Investors and creditors can evaluate a company by examining only one year of data.
2. Investors and creditors cannot evaluate a company by examining only one year of data.
3. To accurately determine the financial performance of a company, it is necessary to compare its
performance from year to year, with a competing company, and with the same industry as a whole.
4. Horizontal analysis provides a year-to-year comparison of a company's performance in different periods.
5. Ratio analysis is used most effectively to measure a company against other companies in different
industries.
1. FALSE
2. TRUE
3. TRUE
4. TRUE
5. FALSE
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A written promise to pay a specific sum of money at a definite future date is called a promissory note
a. True b. False Indicate whether the statement is true or false
The company has no preferred stock outstanding. Calculate the earnings per share for 2019. (Round your answer to two decimal places.)
Amber, Inc. provides the following information for 2019:
A) $0.39 per share
B) $1.56 per share
C) $1.39 per share
D) $1.25 per share
Johnson & Johnson's handling of the Tylenol tablet poisoning episodes demonstrates that a company's performance in a crisis can ________
A) change media reporting patterns B) erode positive goodwill C) cement a positive reputation D) drive up its stock prices
Bess wishes to appeal a decision of a bankruptcy court. Bess may appeal to
a. no court—there is no appeal from a bankruptcy court decision. b. a federal district court. c. the U.S. Supreme Court. d. a state court.