Firms receive cash inflows and disburse cash outflows for investing activities such as to
a. pay dividends.
b. build their productive capacity by acquiring property, plant, and equipment.
c. make debt service payments.
d. all of the above.
e. none of the above.
B
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Starship Inc's gross profit ratio decreased from 36.5% in 2016 to 28.6% in 2017 . What is the trend in this change?
a. An upward trend b. A downward trend c. It depends on whether net sales increased or decreased during the period d. Trends cannot be determined without the dollar amount of the increase provided
Which of the following is not true for a regulated electric utility that has construction work in progress?
a. The political climate of the utility commission that will be ruling on the construction work in progress costs is not an issue to be considered. b. Most utility commissions allow no construction work in progress or only a small amount in the rate base. c. In the long run, everybody pays for inefficiency and excess capacity because disallowed costs are a risk that can drive the stock price down and interest rates up for the utility. d. Costs related to construction work in progress that are disallowed are, in effect, charged to the stockholders. e. Future income will not include a return on disallowed costs.
Which of the following occurs when one person seeks to outdo or outshine another person?
A. differences over facts B. differences over goals and priorities C. competition for scarce resources D. competition for supremacy
What is the difference between comparability and consistency?