Which of the following statements is not correct?
a. the voucher system is used to improve control over cash disbursements
b. the sum of the paid vouchers represents the voucher payable liability of the firm
c. the voucher system permits the firm to consolidate payments of several invoices on one voucher
d. many firms replace accounts payable with a voucher payable system
B
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What is the equation for the Security Market Line? Define each term. If an asset has a beta of 2.0, what type of return should it realize compared to the market portfolio?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. Degree of combined leverage considers the impact of a change in volume on the change in operating income. 2. Reducing the number of outstanding shares will always increase financial leverage since earnings per share will be higher, all else stays the same. 3. A firm will generally generate more financing from internal sources if the firm is experiencing sales growth. 4. Supply chain management has little impact on financial performance and is primarily a marketing and management concept. 5. Many companies such as McDonald's have embraced supply chain management using Web-based procedures.
With respect to the prepaid income from services, which of the following is true?
a. The treatment of prepaid income is the same for tax and financial accounting. b. A cash basis taxpayer can spread the income over the period services are to be provided if all of the services will be completed by the end of the tax year following the year of receipt. c. An accrual basis taxpayer can spread the income over the period services are to be provided if all of the services will be completed by the end of the tax year following the year of receipt. d. An accrual basis taxpayer can spread the income over the period services are to be provided on a contract for three years or less. e. None of these.
Due to a variety of macroeconomic and microeconomic factors, two Eastern European nations suffered permanent adverse shifts in the demand for their manufactured goods. Per the IMF's Articles of Agreement, these nations suffered from
A. a competitive advantage. B. a break-even point. C. a fundamental disequilibrium. D. capital flight. E. diseconomies of scale.