Which of the following hypotheses/theories suggests that investors regard a change in dividend payments as a signal that the firm's management expects future earnings to also change?
A. Information content hypothesis
B. Clientele effect theory
C. Constant payout ratio hypothesis
D. Dividend modification hypothesis
E. Projected earnings hypothesis
Answer: A
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Using the concept of comprehensive income, which of the following items is included as part of comprehensive income but not as part of net income?
a. Unrealized holding gains or losses b. Accounting changes c. Extraordinary items d. Loss on sale of investments
What is the first step in the text’s suggested 13 steps for creating a code of ethics as a team-building exercise?
a. Decide on the organization’s ethical priorities. b. Create a code writing team. c. Obtain approval from organizational leaders. d. Define a “code of ethics.”
The Digital Millennium Copyright Act : A)made notice of copyrights no longer mandatory
B)changed the life of a copyright. C)was enacted to curb the pirating of software and other pirated works. D)provided a safe harbor for copyright infringers.
Pine Publishing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the year the Corporation estimated its total manufacturing overhead cost at $500,000 and its direct labor-hours at 125,000 hours. The actual overhead cost incurred during the year was $450,000 and the actual direct labor-hours incurred on jobs during the year was 115,000 hours. The manufacturing overhead for the year would be:
A. $10,000 overapplied B. $10,000 underapplied C. $50,000 overapplied D. $50,000 underapplied