If you want to buy a business that is growing rapidly, what is the best valuation method to use to determine a fair price for it?
A. book value method
B. market-based approach
C. future earnings method
D. pay-back method
Answer: C
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Which of the following is not a characteristic of accrual basis of accounting?
A) Revenues and expenses are reported in the period in which cash is received or paid B) Revenues are reported in the income statement in the period in which they are earned C) Supports the matching concept D) All are correct.
If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are
A) n/30 B) FOB shipping point C) FOB destination D) consigned
External threats may pose various degrees of adversity upon the company and can surface from many sources and examples, except for
A. the entry of lower-cost foreign competitors and restrictive foreign trade policies. B. the advent of cheaper or better technologies. C. higher overall unit costs relative to those of key competitors. D. new burdensome regulations. E. rising prices on key inputs (such as energy costs).
Because of the complexity of federal securities laws, a recognized defense to a charge of violation of federal securities laws is ignorance of the specific law or laws involved
a. True b. False Indicate whether the statement is true or false