In a single-factor market model the beta of a stock ________.
A. measures the stock's contribution to the standard deviation of the market portfolio
B. measures the stock's unsystematic risk
C. changes with the variance of the residuals
D. measures the stock's contribution to the standard deviation of the stock
A. measures the stock's contribution to the standard deviation of the market portfolio
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A strong system of internal control requires that all payments be made by check except those made from a carefully controlled cash fund, such as a petty cash fund.
Answer the following statement true (T) or false (F)
An adjusting entry could not consist of:
a. A debit to a liability and a credit to revenue. b. A debit to an expense and a credit to a liability. c. A debit to an expense and a credit to an asset. d. A debit to an expense and a credit to revenue.
The measurement principle prescribes that accounting information is based on subjective opinion rather than cost.
Answer the following statement true (T) or false (F)
Long-term creditors are usually most interested in evaluating:
A. Profitability. B. Solvency. C. Liquidity. D. Managerial effectiveness.