Which of these is a factor which requires caution when using ratios to evaluate firm performance?
A. Doing cross-sectional analysis on various firms whose financial statements all conform to GAAP
B. Window dressing of annual financial statements by some firms
C. Limiting comparisons to local firms within the same industry
D. Comparing firms with varying fiscal years
Answer: B & D.
B. Window dressing of annual financial statements by some firms
D. Comparing firms with varying fiscal years
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What are the effects on the accounting equation from the purchase of a short-term investment?
a. Assets and stockholders' equity decrease. b. No effects—assets increase and decrease by the same amount. c. Assets and liabilities decrease. d. Stockholders' equity decreases and liabilities increase.
Questions that prespecify the set of response alternatives and the response format are called structured questions
Indicate whether the statement is true or false
The aim of ________ is to make ads and brand content so engaging or useful that people want to watch them
A) branded entertainment B) advertainment C) social advertising D) subliminal advertising E) infotainment advertising
There are three major types of business activities. ________ activities are the means organizations use to pay for resources such as land, building, and equipment to carry out plans.
Fill in the blank(s) with the appropriate word(s).