The formula for the basic accounting equation is
A) TOTAL ASSETS = TOTAL LIABILITIES - OWNER'S EQUITY.
B) TOTAL ASSETS = TOTAL LIABILITIES + OWNER'S EQUITY.
C) TOTAL LIABILITIES = TOTAL ASSETS + OWNER'S EQUITY.
D) OWNER'S EQUITY = TOTAL LIABILITIES - TOTAL ASSETS.
E) OWNER'S EQUITY = TOTAL ASSETS + TOTAL LIABILITIES.
B
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A business transaction usually requires an exchange between the business and another outside entity
Indicate whether the statement is true or false
Which of the following statements is CORRECT?
A. Assume that two firms are both following generally accepted accounting principles. Both firms commenced operations two years ago with $1 million of identical fixed assets, and neither firm either sold any of those assets or purchased any new fixed assets. The two firms would be required to report the same amount of net fixed assets on their balance sheets as those statements are presented to investors. B. Assets other than cash are expected to produce cash over time, and the amount of cash they eventually produce must be the same as the amounts at which the assets are carried on the books. C. The income statement shows the difference between a firm's income and its costs-i.e., its profits-during a specified period of time. However, all reported income comes in the form of cash, and reported costs likewise are consistent with cash outlays. Therefore, there will not be a substantial difference between a firm's reported profits and its actual cash flow for the same period. D. The primary reason the annual report is important in finance is that it is used by investors when they form expectations about the firm's future earnings and dividends and the riskiness of those cash flows. E. EPS stands for "earnings per share," while DPS stands for "dividends per share." We would normally expect to see DPS exceed EPS.
Personal Touch produces and markets beaded purses. When graphed, the demand schedule for its purses is a straight line. If one purse costs $20, 5,000 beaded purses are sold. At $25, 4,500 purses are sold. How many beaded purses will be sold if the price per purse is increased to $30?
A. 5,500 B. 4,250 C. 4,000 D. 3,750 E. 3,500
Cryptanalytic attacks try every possible key on a piece of ciphertext until an intelligible translation into plaintext is obtained
Indicate whether the statement is true or false.