Which of the following is true regarding the debt to equity ratio?
a. The debt to equity ratio is a stringent measure of liquidity.
b. The debt to equity ratio measures the productivity and desirability of the equity investment.
c. The debt to equity ratio measures management's ability to productively employ all its resources.
d. The debt to equity ratio measures the capital structure of the entity.
D
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A ______ is a website whose content is composed and edited by members of the public.
a. blog b. wiki c. database d. social media
Why doesn't stockholders' equity equal the market value of equity?
A. Stockholders' equity usually does equal the market value of equity. B. Investors tend to incorrectly price the market value of equity. C. It's due to incorrect entries prepared by accountants. D. It's related to the use of historical cost to report many long-term assets and the expensing of value generating costs such as research and development and advertising.
When an interpersonal skill becomes a habit, it loses its effectiveness
Indicate whether the statement is true or false.
Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 7,000 units of the part that are needed every year. Per Unit Direct materials$8.70?Direct labor$2.70?Variable overhead$3.30?Supervisor's salary$1.90?Depreciation of special equipment$1.80?Allocated general overhead$5.50?An outside supplier has offered to make the part and sell it to the company for $21.40 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside
supplier's offer were accepted, only $6,000 of these allocated general overhead costs would be avoided.Required:a. Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it inside the company.b. Which alternative should the company choose? What will be an ideal response?