Which of the following would be the best investment?

A. A company that pays no dividends, but has substantial net income.
B. It depends on one's investment objectives.
C. A company whose stock price has increased steadily, but pays no dividends.
D. A company that pays substantial dividends, but whose earnings per share has been declining over the past several years.


Answer: B

Business

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The unusual demand for basic necessities in the aftermath of a natural disaster is an example of ______ variations.

A. cyclical B. irregular C. seasonal D. exponential

Business

Which of the following deductions is paid by both the employer and employee?

A) federal income taxes B) federal unemployment taxes C) FICA taxes D) SUTA taxes

Business

The goal of aggregate planning is to satisfy demand in a way that minimizes profit

Indicate whether the statement is true or false.

Business

The expense recognition principle, also called the matching principle:

A. Provides guidance on when a company must recognize revenue. B. Prescribes that accounting information is based on actual cost. C. Prescribes that a company record the expenses it incurred to generate the revenue reported. D. Prescribes that a company report the details behind financial statements that would impact users' decisions. E. Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

Business