Identify the statement that is incorrect.
A. Risk is higher if a company has more liabilities.
B. Lower financial leverage involves lower risk.
C. The debt ratio is one measure of financial risk.
D. Higher financial leverage involves higher risk.
E. Risk is higher if a company has more assets.
Answer: E
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A judge deciding a common law case must look for guidance to similar cases previously decided by that court or superior courts
a. True b. False Indicate whether the statement is true or false
A project's depreciation expense must be considered when evaluating its incremental operating cash flows because:
A. depreciation represents a tax-deductible cash expense. B. the firm incurs a cash payment equal to the depreciation expense each year. C. depreciation has an impact on the taxes paid by the firm, which is a cash flow. D. depreciation is a sunk cost. E. depreciation is a fixed cash payment that the firm receives each year.
What is the standard deviation of the sample described by this frequency table?
What will be an ideal response?
On April 30, 2018, Marie Claire sold 1,000 shares of her Spectrum Company's common stock to Fountain of the Sun for $16,000. The stock cost Marie Claire $10,000.Spectrum Company's accounting equation:
A. is not affected because of the cost principle. B. will show a decrease in total assets and total stockholders' equity. C. will show an increase in total assets and total stockholders' equity. D. is not affected because the corporation is separate from its owners.