ROCE disaggregates into the following components:
a. Profit Margin for ROCE Ratio x Inventory Turnover Ratio x Debt Ratio
b. Profit Margin for ROCE Ratio x Total Assets Turnover Ratio x Debt Ratio
c. Profit Margin for ROCE Ratio x Inventory Turnover Ratio x Capital Structure Leverage Ratio
d. Profit Margin for ROCE Ratio x Total Assets Turnover Ratio x Capital Structure Leverage Ratio
e. Profit Margin x Total Assets Turnover Ratio x Debt Ratio
D
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In both U.S. GAAP and IFRS, hedge accounting is elective; firms need not designate any derivatives as accounting hedges, regardless of the degree to which the derivatives mitigate the volatility of outcomes of other arrangements
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. Assets are either financed through liabilities or equity. 2. The accrual accounting method registers revenues billed when the actual cash is received; and registers expenses as incurred (accrued) but not necessarily as they are paid. 3. The balance sheet allows venture owners to assess how healthy the business is at a point in time. 4. Assets are defined as the tangible property that the venture owns and has accounting value. 5. Current assets represent the most liquid assets of a venture, meaning they can more easily be turned into cash.
The selection and sequencing of available jobs to be run at individual work stations and the
assignment of these jobs to workers is called: A) priority management. B) scheduling. C) dispatching. D) production control.
Which of the following statements is CORRECT?
A. In general, a firm with low operating leverage also has a small proportion of its total costs in the form of fixed costs. B. There is no reason to think that changes in the personal tax rate would affect firms' capital structure decisions. C. A firm with a relatively high business risk is more likely to increase its use of financial leverage than a firm with low business risk, assuming all else equal. D. If a firm's after-tax cost of equity exceeds its after-tax cost of debt, it can always reduce its WACC by increasing its use of debt. E. Suppose a firm has less than its optimal amount of debt. Increasing its use of debt to the point where it is at its optimal capital structure will decrease the costs of both debt and equity.