The statement of cash flows:
A) along with the balance sheet and income statement is prepared on the accrual basis.
B) along with the balance sheet and statement of retained earnings is dated as of a specific date.
C) along with the balance sheet is used to analyze liquidity.
D) ties the balance sheet to the statement of retained earnings.
C
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Which of the following factors is classified as environmental dynamics?
A. Competitive rivalry B. Market size C. Seasonality D. Social changes E. Barriers to entry
Which of the following items has no effect on stockholders' equity?
A) Receipt of cash owed to the business (accounts receivable) B) Sale of a service C) Payment of an expense D) Dividend distributions
The following data pertain to the Ouster Division of Klandestine Company:Divisional contribution margin$700,000Profit margin controllable by the divisional manager320,000Profit margin traceable to the division294,400Average asset investment1,280,000The company uses responsibility accounting concepts when evaluating performance; Ouster's division manager is contemplating the following three investments. He can invest up to $400,000.?No. 1No. 2No. 3Cost$250,000$300,000$400,000Expected income50,00054,00096,000Required: A. Calculate the ROIs of the three investments.B. What is the division manager's current ROI, computed by using responsibility accounting concepts?C. Which of the three investments would be selected if the manager's focus is on Ouster's divisional performance, as judged by
ROI? Why?D. If Klandestine has an imputed interest charge of 22%, compute the residual income of investment no. 3. If Ouster's Division manager is evaluated by residual income, is this investment attractive from Ouster's perspective? From Klandestine's perspective? Why? What will be an ideal response?
What is the name given to the exchange where banks are the major, and sometimes only, security traders?
A) banker's bourses B) banking syndicates C) public bourses D) private bourses