Accounting standards setters do which of the following?
A. Develop concepts, rules, and guidelines for financial reporting.
B. Protect investors and creditors.
C. What the public thinks accountants should do and what accountants think they can do.
D. Assure transparent and truthful reporting and guarantee the efficient functioning of the capital markets.
Answer is D:Assure transparent and truthful reporting and guarantee the efficient functioning of the capital markets.
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Which of the following leadership theories expects the leader to continually be concerned about subordinate motivation?
A. situational leadership theory B. contingency theory C. path-goal theory D. leader–member exchange theory
On-Call Service Corporation bought a building lot to construct a new corporate office building. An older home on the building lot was razed immediately so that the office building could be constructed. The cost of purchasing the older home should be
a. recorded as part of the cost of the land. b. written off as a loss in the year of purchase. c. written off as an extraordinary item in the year of purchase. d. recorded as part of the cost of the new building.
The accounts receivable turnover ratio equals
a. profit margin divided by average accounts receivable at the end of the period. b. gross margin divided by average accounts receivable at the end of the period. c. sales revenue divided by ending accounts receivable at the end of the period. d. sales revenue divided by average accounts receivable during the period. e. gross margin divided by average accounts receivable during the period.
Alpha value is required return subtracted from expected return
Indicate whether the statement is true or false.