What are common-size income statements?
COMMON-SIZE INCOME STATEMENT
One tool for analysis of the income statement, a common-size income statement, expresses each expense and net income as a percentage of revenues. An analyst can use a common-size income statement to study over-time changes or among firm differences in the relations among revenues, expenses, and net income and to identify relations that the analyst should explore further.
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The ________ says people have a general tendency to attribute success to themselves and failure to external causes
A) availability heuristic B) trait-role theory C) awareness set D) generalization theory E) hedonic bias
In the context of identifying competitors' strategies, the more that one firm's strategy resembles another firm's strategy, the more likely the two firms are to ________
A) merge B) compete C) globalize D) form a partnership E) become market leaders
Amortizing a bond discount:
A. Increases the market value of the Bonds Payable. B. Decreases interest expense each period. C. Allocates a portion of the total discount to interest expense each interest period. D. Decreases the Bonds Payable account. E. Increases cash flows from the bond.
In U.S. v. King, King was a major investor in OSI, which was working on a land project in Costa Rica. He was accused by the U.S. government of violating the Foreign Corrupt Practices Act (FCPA) by bribing government officials in Costa Rica, in an effort to make the land deal work. The U.S. courts held that King:
a. as an investor in OSI could not be prosecuted, but the company itself could be b. did bribe the officials, but that since that is how government licenses are regularly obtained in that country, it did not violate the FCPA c. could not be prosecuted in the U.S. for an act that may have occurred in another nation; it would be up to the government of Costa Rica to prosecute King d. could be fined up to $100,000 for violating the FCPA but could not be imprisoned e. none of the other choices