The discounted earnings method of valuation establishes
a. potential earning power.
b. an appropriate rate for replacement.
c. expectancy of the business expenses.
d. future profits.
ANSWER: a
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What will be an ideal response?
A summary of selected ledger accounts appear below for Alberto's Plumbing Services for the 2009 calendar year end. Alberto, Capital 12/31 8,500 1/1 6,500 12/31 18,500 Alberto, Drawing 6/30 3,500 12/31 8,500 11/30 5,000 Income Summary 12/31 15,000 12/31 33,500 12/31 18,500 Net income for the period is
A) $16,500 B) $33,500 C) $18,500 D) $15,000
Winslow Company sold investment land to an unrelated purchaser. The purchaser paid $250,000 cash, assumed Winslow's $600,000 mortgage on the land, and gave Winslow its $580,000 ten-year, interest-bearing note. Compute Winslow's amount realized on sale.
A. $850,000 B. $830,000 C. $250,000 D. $1,430,000
Javier gives Stewart feedback about his poor performance in his previous project. Javier moralizes and lectures Stewart. He also records the feedback. During the course of the feedback, Javier becomes too judgmental. Which of the following was a potential problem with the feedback?
A. The feedback was imbalanced. B. The feedback was untimely. C. The feedback was prescriptive. D. The feedback was personal.