What are some items that can affect an investment center's EVA calculation, and how can EVA be improved?
Some items that can affect an investment center's EVA calculation include managers' decisions regarding pricing, product sales volume, income taxes, the cost of capital, and capital investments, among other financial decisions. EVA can be improved by increasing sales, decreasing costs, decreasing assets, or decreasing the cost of capital.
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The most obvious risk to bond investors is that a company will fail and be unable to pay its debts
a. True b. False Indicate whether the statement is true or false
How does goodwill arise? How is it accounted for and reported on the financial statements?
Which of the following will an auditor not perform when looking for additions to debt?
a. Trace the proceeds into the cash receipts records. b. Examine canceled notes. c. Obtain assurance regarding board approval of the debt through review of board meeting minutes d. Trace the proceeds into the bank statement.
Companies should ask if candidates are subject to any post-termination agreements with prior employers to reduce legal liability.
Answer the following statement true (T) or false (F)