What is the underlying premise of clean surplus theory and how is it applied in determining the valuation of a firm’s equity?
What will be an ideal response?
ANSWER:
The underlying premise of clean surplus theory is that all profit and loss elements go through income. The valuation of a firm’s equity is based on the beginning of the period book value of equity plus the present value of expected future abnormal earnings, which are defined as earnings in excess of expected normal earnings.
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Derrick is a clinic director running a downtown Chicago facility for a large nonprofit health organization. He receives most of his strategic direction from the organization and supervises several department managers in his workplace. Derrick is a
A. first-line manager. B. middle manager. C. tactical manager. D. functional manager. E. coordination manager.
Businesses rarely need to update business strategies as the business environment remains relatively stable.
Answer the following statement true (T) or false (F)
Special journal entries are
A) all posted at the end of the accounting period B) posted either daily or monthly depending on the accounts used C) all posted daily D) recorded in addition to the same information being recorded in a general journal
Examples of preparing customers for service encounters include all of the following EXCEPT ____________
a. printing dress code requests on invitations b. sending reminders of dental appointments c. printing guidelines on customer cards d. billing customers for services rendered e. all of the above are examples of preparing customers for service encounters