When the constant-growth valuation model is used to find the cost of common stock equity capital, it can easily be adjusted for flotation costs to find the cost of new common stock; the capital asset pricing model (CAPM) does not provide a simple
adjustment mechanism.
Indicate whether the statement is true or false
TRUE
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Once revenue and expense accounts serve their purpose of accumulating specific revenue and expense items for an accounting period, they have no further purpose for that period
Indicate whether the statement is true or false
In responding to a retail audit, management needs to be aware that the audit may have been conducted by one person who has judged retail activities at one point in time
Indicate whether the statement is true or false
Which of the following is the best example of a variable cost in a manufacturing environment?
a. advertising cost b. direct materials cost c. supervisors' salaries d. Both a and c answers are correct. e. Both b and c answers are correct.
Manufacturer brands are always advertised and distributed more widely than dealer brands.
Answer the following statement true (T) or false (F)