[APPENDIX] Which accounts are used by a sole proprietorship that are not used by a corporation?
A sole proprietorship uses a capital account instead of the common stock, additional paid-in capital, and retained earnings accounts, which are used by corporations. It also utilizes a withdrawals account instead of a dividends account.
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The statement of cash flows summarizes the operating, investing, and financing activities of a business for a period of time
a. True b. False Indicate whether the statement is true or false
Common-size financial statements exclude the dollar amount as a relevant variable in the analysis, which makes comparison of one period with the next more meaningful
a. True b. False Indicate whether the statement is true or false
What is a lag and give an example of when you would need to use one?
Fill in the blank(s) with the appropriate word(s).
The required rate of return used in the net present value model can also be called the
A) hurdle rate B) minimum acceptable rate of return C) cost of capital D) discount rate E) all of these