One common way financial managers determine whether riskier proposals generate high enough expected returns
to justify the risk is by using a lower discount rate when they compute the present values of cash flows for risky
projects than when they compute present values for less risky projects
a. True
b. False
Indicate whether the statement is true or false
False
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Valor Company issued 5,000 shares of $1 par common stock for $30 per share, providing the company with $150,000 in cash. What effect, in addition to the increase in cash, does this transaction have on the accounting equation for Valor?
a. Common Stock increases $150,000. b. Common Stock increases $5,000? Additional PaidÂin Capital—Common increases $145,000. c. Common Stock increases $5,000; Retained Earnings increases $145,000. d. Common Stock increases $5,000; Gain on Sale of Common Stock increases $145,000.
Family Fashions uses standard costs for its manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead volume variance.
A) $16,800 F
B) $46,200 U
C) $46,200 F
D) $16,800 U
What does the phrase, "Revenue is recognized when earned" mean?
A) Revenue is recorded in the accounting records when the goods are received from a supplier, and reported on the income statement when sold to the customer. B) Revenue is recorded in the accounting records and reported on the income statement when the cash is received from the customer. C) Revenue is recorded in the accounting records when the goods are sold to a customer, and reported on the income statement when the cash payment is received from the customer. D) Revenue is recorded in the accounting records and reported on the income statement when goods are sold and delivered to a customer.
What is a key milestone that needs to be spelled out in the solutions section of your business plan?
a. Completion of the alpha version of your solution b. Completion of the beta version of your solution c. Completion and release of version 1.0 d. All of the above