Which of the following does not describe the continental model of financial reporting?
a. A weak accounting profession
b. Strong governmental influence
c. The primacy of investor needs over tax influences and creditor needs
d. Emphasis of debt financing over equity capital
ANSWER: C
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Which of the following is a key benefit of using the degree of leverage concept in financial analysis?
A. It allows decision makers a relatively clear assessment of the consequences of alternative actions. B. It establishes the optimal capital structure for the firm. C. It shows how a given change in leverage will affect sales. D. It identifies, with certainty, the future net income based upon sales projections about the future. E. None of the above statements is correct.
Which of these would require unanimous consent of all the partners?
A) Confessing a judgment B) Selling the partnership goodwill C) Selling all partnership assets D) All of the above
A multipoint circuit configuration is also sometimes called ________
A) multiplex B) multitask C) multidrop D) multiplan
A printer that cost $600 and has been owned for 2 years is traded in for a new one. Depreciation in the amount of $120 had been taken each year. The new printer has a fair market value of $1,250. A trade-in allowance of $400 is granted, and the balance is paid in cash. The transaction to enter the exchanges of these two assets would result in the recognition of
A. a gain of $40. B. a loss of $40. C. a gain of $200. D. neither a gain nor a loss.