In the United States, equity monitoring costs are lower than most other developed countries.
Answer the following statement true (T) or false (F)
True
In the United States, equity monitoring costs are comparatively low because corporations produce quarterly reports and must comply with relatively stringent audit requirements, which are less prevalent in other countries. See 12-6: Variations in Capital Structures among Firms
You might also like to view...
Blanton Corporation purchased 15% of the outstanding shares of common stock of Worton Corporation as a long-term investment. Subsequently, Worton Corporation reported net income and declared and paid cash dividends. What journal entry would Blanton Corporation use to record the dividends it receives?
a. debit Investment in Worton Corporation; credit Cash b. debit Cash; credit Dividend Revenue c. debit Investment in Worton Corporation; credit Income of Worton Corporation d. debit Cash; credit Investment in Worton Corporation
On January 1, 2016, Martini, Inc acquired a machine for $1,050,000
The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be $100,000. What is the book value of the machine at the end of 2017 if the company uses the straight-line method of depreciation? A) $630,000 B) $670,000 C) $570,000 D) $629,996
A partnership is considered to be a legal entity for the purpose of
a. ownership of property. b. federal taxes. c. liability to others. d. none of these.
A firm with a total asset turnover lower than industry standard may have ________
A) excessive debt B) excessive interest costs C) insufficient sales D) insufficient fixed assets