What distinguishes liabilities from equity?
What will be an ideal response?
Liabilities are creditors' claims on assets. They reflect obligations to transfer assets or provide products or services to others in a future outflow of resources. Equity is stockholders' claim to assets. It includes the investments of stockholders and what the company earns on the stockholders' behalf. Equity is also called net assets or residual interest.
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The Big Mac Index is a measure of economic health in a country.
Answer the following statement true (T) or false (F)
The profitability index is
a. the ratio of net cash flows to the original investment. b. the ratio of the present value of cash flows to the original investment. c. a capital budgeting evaluation technique that doesn't use discounted values. d. a mandatory technique when capital rationing is used.
______ involves repeated, unwanted behaviors designed to humiliate victims.
A. Incivility B. Violence C. Bullying D. None of these
A company is evaluating three possible investments
Each uses the straight-line method of depreciation. Following information is provided by the company: Project A Project B Project C Investment $230,000 $54,000 $230,000 Residual value 0 12,000 36,000 Net cash flows: Year 1 56,000 38,000 94,000 Year 2 56,000 29,000 64,000 Year 3 56,000 25,000 74,000 Year 4 56,000 22,000 34,000 Year 5 56,000 0 0 What is the accounting rate of return for Project B? (Round your answer to two decimal places.) A) 38.14% B) 26.19% C) 54.55% D) 51.83%