Which of the following statements is CORRECT? As a firm increases the operating leverage used to produce a given quantity of output, this will
A. normally lead to a decrease in its business risk.
B. normally lead to a decrease in the standard deviation of its expected EBIT.
C. normally lead to a decrease in the variability of its expected EPS.
D. normally lead to a reduction in its fixed assets turnover ratio.
E. normally lead to an increase in its fixed assets turnover ratio.
Answer: D
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Employers are required to compute and report payroll taxes on a calendar-year basis, even if a different fiscal yearis used for financial reporting and income tax purposes
a. True b. False Indicate whether the statement is true or false
____________________ controls primarily concern safeguarding of assets and ensuring the reliability of the financial statements
Fill in the blank(s) with correct word
Assets are converted to revenues as they benefit the company
Indicate whether the statement is true or false
Which of the following is a component of the “born morally neutral” philosophy of human nature?
a. Prior to birth, the mind exists in a spiritual realm. b. Kindness is part of the human DNA. c. Children have an innate “moral sense.” d. Newborns have moral capacities.