Bristo Corporation has sales of 2,000 units at $35 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $22,000, the degree of operating leverage is:
A. 0.79
B. 3.50
C. 2.10
D. 1.40
Answer: C
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During the first phase of an audit, a CPA most likely would:
A. inquire of the company's attorney as to whether any unrecorded claims are probable or asserted. B. identify specific internal control activities that are likely to prevent fraud. C. evaluate the reasonableness of the company's accounting estimates. D. evaluate the integrity of management.
All of the following are economic factors that can cause a firm's price-earnings ratio to be higher than that of other firms in the same industry except:
a. when investors expect that the firm's strategy enables it to generate and sustain greater profitability for a given cost of equity capital b. when the firm earns the same profitability but with lower risk and, therefore, a lower cost of equity capital c. a firm's business model that enables it to generate faster growth in earnings provided the growth creates positive residual ROCE d. a firm's business model that results in slower growth in earnings and this creates negative residual ROCE
Which of the following is most likely a want rather than a need?
A. clothing B. transportation C. steak D. shelter E. water
The financial statements of Weston Office Supply include the following items
2017 2016 Cash $43,500 $50,000 Short-term Investments 27,000 17,000 Net Accounts Receivable 102,000 97,000 Merchandise Inventory 125,000 119,000 Total Assets 527,000 554,000 Total Current Liabilities 251,000 242,000 Long-term Note Payable 59,000 51,000 What is 2017 current ratio? (Round your answer to two decimal places.) A) 0.84 B) 0.56 C) 1.19 D) 1.70