Which of the following statements is generally incorrect from an investor's perspective?
A. A 10% net margin is generally preferred over an 8% net margin.
B. A 20-day average collection period for accounts receivable is generally preferred over a 30-day average collection period.
C. A 1:1 current ratio is generally preferred over a 1.5:1 current ratio.
D. A 5% dividend yield is generally preferred over a 3% dividend yield.
Answer: C
You might also like to view...
Which of the following uses a deductive approach to persuasion?
A) Because the stock market has been falling lately, share prices of our company stock will probably also decline. B) Because the stock price of our company fell, the entire market will probably also decline. C) Our stock price is like a marathon runner, slowly making progress towards our goal. D) As always, the stock market really affected our stock prices last week. E) Have you heard what happened to stock prices last week?
Financial reporting for a special-purpose local government depends on whether that government is engaged in governmental-type, business-type or fiduciary-type activities.
Answer the following statement true (T) or false (F)
Which of the following examples highlight the contrast effect when a leader provides a performance evaluation for a subordinate?
A. Comparing the employee with other people recently encountered who rank higher or lower on similar characteristics. B. Comparing the employee’s most recent performance with overall expectations of performance. C. Comparing the employee’s performance with leader expectations for what the job role requires. D. Comparing the employee’s performance with his or her performance from the last evaluation period
U.S. GAAP and IFRS distinguish between revenues and expenses on the one hand and gains and losses on the other. Which of the following is/are not true?
a. Revenues and expenses result from the recurring, primary operating activities of a business. b. Income items include the ordinary, recurring operating activities of the firm. c. Gains and losses result from either peripheral activities or nonrecurring activities. d. The reporting of revenues and expenses are at gross amounts, and firms report gains and losses at net amounts. e. Gains and losses result from the recurring, primary operating activities of a business.