Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting?
A. Long-term debt.
B. Accounts payable.
C. Retained earnings.
D. Common stock.
E. Preferred stock.
Answer: B
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Eric Company reports its income from its investment in Kate Company under the equity method. Eric recognized income of $150,000 from its investment in Kate during the current year. No dividends were declared or paid by Kate during the year. Eric would show the $150,000 in its statement of cash flows for the current year prepared under the indirect method as
a. cash from investing activities. b. a reduction of the investment account. c. a deduction from net income in the operating activities section. d. a noncash activity.
It is important for a manager to be open to feedback because ______.
a. the receivers are doing most of the work b. receivers won’t ask questions of managers who get upset when asked c. feedback eliminates the need for follow up d. feedback is more likely to be positive than negative
Dianne, an employee at the local hospital, notices a “No Smoking” sign outside the building and around the exits. What primary level of control is being used?
a. standing plans b. self-control c. observation d. clan control
Nonprofit corporations are also called ________
A) eleemosynary institutions B) Subchapter C corporations C) alien corporations D) private corporations