Two metrics that are used to measure a company's financial performance are net income and cash flow. Accountants emphasize net income as calculated in accordance with generally accepted accounting principles. Finance people generally put at least as much weight on cash flows as they do on net income.
Answer the following statement true (T) or false (F)
True
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Use the following information to answer the question below. The following transactions involving Lupine Corporation occurred during the year: Apr. 1 Purchased 2,000 shares of its own preferred stock for $20, the current market price. This is the first transaction involving its own stock engaged in by the company. May 3 Sold 400 of the shares purchased on April 1 for $25 per share. June 5 Retired
600 of the shares purchased on April 1 . The original issue price was $10 . The par value of the stock is $5. The entry to record the May 3 transaction would be: a. Treasury Stock, Preferred 10,000 Cash 10,000 b. Cash 10,000 Treasury Stock, Preferred 8,000 Paid-in Capital, Treasury Stock 2,000 c. Cash 4,000 Retained Earnings 6,000 Treasury Stock, Preferred 10,000 d. Treasury Stock, Preferred 8,000 Cash 8,000
According to GAAP, goodwill should
a. be expensed when acquired. b. be amortized over its useful life. c. be written down when an impairment occurs. d. never be expensed, amortized, or written down.
One characteristic of 12(b)-1 charges is that they are payable
A) only in years that the mutual fund shows an increase in net asset value. B) each year regardless of the performance of the mutual fund. C) only during the first year the fund is owned. D) only when shares in the fund are sold.
The term ________ refers to quantifiable metrics used to evaluate an organization or an individual's success in a particular activity
A) dashboards B) key performance indicators C) mashups D) portal