A discount merchandiser is likely to have a higher inventory turnover than more upscale stores with higher merchandise prices.
Answer the following statement true (T) or false (F)
True
A discount merchandiser operates at lower margin, and relies on higher inventory turnover to make a profit.
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Every business transaction leaves the accounting equation in balance.
Answer the following statement true (T) or false (F)
Which of the following statements is correct?
A. A project's discounted payback period (DBP) is normally shorter than its traditional payback period (PB) because DPB accounts for the time value of money, whereas PB does not. B. To compute the NPV for a project, the firm's required rate of return must be known. To compute a project's internal rate of return (IRR), the firm's required rate of return is not used because the IRR is the discount rate where the project's NPV equals zero. C. Two firms could compute different internal rate of return (IRR) for a project if their required rates of return differ. D. If a project's net present value (NPV) is equal to its internal rate of return (IRR), the project's value is in equilibrium. E. Everything else equal, firms with higher required rates of return generally are able to purchase more capital budgeting projects than firms will lower required rates of return.
[The following information applies to the questions displayed below.] At the end of Year 1, the following information is available for Grumpy, Happy, and Doc Companies. GrumpyHappyDocTotal Assets$2,000,000 $2,000,000 $3,000,000 Total Liabilities 1,400,000 800,000 1,800,000 Stockholders' Equity 600,000 1,200,000 1,200,000 Net Income 118,000 190,000 150,000 Which company is the most profitable from the stockholders' perspective?
A. Doc B. Happy C. Grumpy D. Cannot be determined
Davis points a gun at Eton, threatening to shoot him if he does not steal from his employer, Freddy's Convenience Store, and give the stolen funds to Davis. Charged with theft, Eton can successfully claim, as a defense
a. nothing. b. duress. c. entrapment. d. self-defense.