Using the earnings multiple approach is determining the present value of an annuity as a means to determine the face value of the insurance policy one needs to purchase
Indicate whether this statement is true or false.
Answer: TRUE
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Which of the following is notan advantage of issuing bonds instead of common stock?
a. Tax savings result. b. Income to common shareholders may increase. c. Earnings per share on common stock may be lower. d. Stockholder control is not affected.
Maccari Corporation uses the FIFO method in its process costing system. Operating data for the Casting Department for the month of September appear below: UnitsPercent Complete with Respect to ConversionBeginning work in process inventory24,00080%Transferred in from the prior department during September61,000 Ending work in process inventory10,00060%According to the company's records, the conversion cost in beginning work in process inventory was $61,824 at the beginning of September. Additional conversion costs of $206,412 were incurred in the department during the month.The cost per equivalent unit for conversion costs for September is closest to: (Round off to three decimal places.)
A. $3.220 B. $3.156 C. $3.340 D. $3.384
F & R Construction, Inc has consistently used the percentage-of-completion method of recognizing revenue. Last year F & R started work on a $5,000,000 construction contract, which was completed this year. The accounting records disclosed the following data for last year: Progress billings ..................................... $1,500,000 Costs incurred
1,350,000 Collections ........................................... 1,050,000 Estimated cost to complete ............................ 2,600,000 How much revenue should F & R have recognized on this contract last year? a. $1,500,000 b. $1,700,000 c. $1,100,000 d. $400,000
A benefit of franchising to a franchisor is _____
a. the ability to develop a national presence with less franchisor investment than ownership b. lack of uniformity c. total channel control d. intrafranchise competition