Wonderland, Inc. has a reported book value of $20 million; however, the market value of Wonderland's stock is $64 million. This means:
A) the company is not reporting its assets correctly on the Balance Sheet.
B) the market thinks the company is overvalued.
C) the market thinks the company is worth over three times what the Balance Sheet reports.
D) the CEO should get a raise.
C) the market thinks the company is worth over three times what the Balance Sheet reports.
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Checks returned by a bank because customers did not have sufficient funds in their account are called
a. Canceled checks b. Certified checks c. NSF checks d. Outstanding checks
Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The correct journal entry to record the payment on August 16 is:
A. Debit Accounts Payable $8,167.50; credit Cash $8,167.50. B. Debit Accounts Payable $9,750; credit Merchandise Inventory $97.50; credit Cash $9,652.50. C. Debit Cash $8,250; credit Accounts Payable $8,250. D. Debit Accounts Payable $8,250; credit Merchandise Inventory $82.50; credit Cash $8,167.50. E. Debit Merchandise Inventory $8,250; credit Cash $8,250.
An operating segment is a component of a company
A. that engages in business activities to earn revenues and incur expenses. B. whose operating results are regularly reviewed by the company's chief operating officer for budgeting and evaluation purposes. C. for which financial information is available. D. All of these types of companies would have an operating segment as a component.
Because of the mathematical properties of the message authentication code function it is less vulnerable to being broken than encryption.
Indicate whether the statement is true or false.