Interest on debt is tax-deductible to the issuing corporation, whereas dividends on stock are not
Indicate whether the statement is true or false
True
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Last month Peggy Company had a $30,000 profit on sales of $250,000. Fixed costs are $60,000 a month. What sales revenue is needed for Peggy to break even?
A. $166,667 B. $90,000 C. $280,000 D. $30,000
Which of the following statements is true? ?
A. ?In a static model, an economy is assumed to start at a point where all variables are constant. B. ?In the dynamic model of money, the longer prices take to adjust to shocks, the more long-lived is the liquidity effect. C. ?In the dynamic model of money, all variables are initially growing at an increasing rate but they eventually reach a steady state. D. ?Money supply is the only endogenous variable in the dynamic model of money.
Current liabilities are obligations whose liquidation is reasonably expected to require the use of existing current assets or the creation of other current liabilities within
A) one year or operating cycle, whichever is longer. B) one year. C) one year or operating cycle, whichever is shorter. D) an operating cycle.
Which of the following BEST describes the term "economic system"?
A. A nation's system for allocating resources among its citizens B. The value of all of the products a nation exports minus the economic value of its imported products C. The total value of all goods and services produced by a national economy within a given period D. A nation's policy to smooth out fluctuations in output and unemployment and to stabilize prices E. The system for controlling the size of the nation's money supply