The journal entry to record interest that has been earned but not yet received includes a debit to Interest Receivable and a credit to Interest Income.
Answer the following statement true (T) or false (F)
True
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________ are statements about proposed relationships rather than merely questions to be answered
A) Theories B) Models C) Experiments D) Hypotheses E) Scientific notation
In the conclusion portion of the outline for his informative presentation, Khasim prepares a restatement of his thesis and a creative ending. Which primary component of an informative presentation’s conclusion does Khasim still need to prepare?
a. a call to action b. proof of his credibility as a speaker c. a restatement of his main points d. a demonstration of the topic’s importance
A company uses the effective interest method to amortize a bond premium. Which of the following statements is true regarding the carrying value of the bond?
A. The carrying value will decrease by smaller amounts each year. B. The carrying value will decrease by equal amounts each year. C. The carrying value will decrease by larger amounts each year. D. The carrying value will be lower than the face value of the bond until maturity.
Which of the following statements is CORRECT?
A. Suppose a firm that has been earning $2 and paying a dividend of $1.00, or a 50% dividend payout, announces that it is increasing the dividend to $1.50. The stock price then jumps from $20 to $30. Some people would argue that this is proof that investors prefer dividends to retained earnings. Miller and Modigliani would agree with this argument. B. Other things held constant, the higher a firm's target dividend payout ratio, the higher its expected growth rate should be. C. Miller and Modigliani's dividend irrelevance theory says that the percentage of its earnings that a firm pays out in dividends has no effect on its cost of capital, but it does affect its stock price. D. The federal government sometimes taxes dividends and capital gains at different rates. Other things held constant, an increase in the tax rate on dividends relative to that on capital gains would logically lead to a decrease in dividend payout ratios. E. If investors prefer firms that retain most of their earnings, then a firm that wants to maximize its stock price should set a high dividend payout ratio.