Multiple Choice: Conceptual Please note that some of the answer choices, or answers that are very close, are used in different questions. This has caused us no difficulties, but please take this into account when you make up exams. Which of the following statements is CORRECT?
A. The four most important financial statements provided in the annual report are the balance sheet, income statement, cash budget, and the statement of stockholders' equity.
B. The balance sheet gives us a picture of the firm's financial position at a point in time.
C. The income statement gives us a picture of the firm's financial position at a point in time.
D. The statement of cash flows tells us how much cash the firm must pay out in interest during the year.
E. The statement of cash flows tells us how much cash the firm will require during some future period, generally a month or a year.
Answer: B
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Milton Friedman would have agreed with which of the following statements about social responsibility?
a. A company will produce higher quality products when it practices social responsibility. b. A company will increase its sales when it practices social responsibility. c. A company will be able to create better jobs when it practices social responsibility. d. A company will become distracted from its task to maximize profits when it practices social responsibility. e. A company will provide improved value when it practices social responsibility.
For a group of people to become a public, which of the following does NOT occur?
A) They must face a similar situation. B) They must recognize what is problematic in that situation. C) They must organize to confront a problem. D) They must seek public relations counsel in order to resolve the situation.
Exporting using ocean freight rather than air freight is a much cheaper alternative, particularly when calculated on the basis of total costs.
Answer the following statement true (T) or false (F)
If a subsidiary re-acquires its outstanding shares from outside ownership for more than the noncontrolling interest valuation basis at the date of buying such treasury stock, which of the following statements is true?
A. Treasury stock on the parent's books will increase. B. No adjustment is necessary. C. Treasury stock on the parent's books will decrease. D. Additional paid-in capital on the parent company's books will decrease. E. Investment in subsidiary will increase.