Which of the following statements is CORRECT? As a firm increases the operating leverage used to produce a given quantity of output, this
A. normally leads to an increase in its fixed assets turnover ratio.
B. normally leads to a decrease in its business risk.
C. normally leads to a decrease in the standard deviation of its expected EBIT.
D. normally leads to a decrease in the variability of its expected EPS.
E. normally leads to a reduction in its fixed assets turnover ratio.
Answer: E
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Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long?
a. The company may need to borrow to acquire operating cash. b. The company may offer trade discounts to lengthen the collection period. c. Cash flows from operations may be higher than expected for the company's sales. d. The company should expand operations with its excess cash.
List and discuss three ways in which the statement of cash flows helps financial statement users.
What will be an ideal response?
The bonding of employees is an example of which feature of a good system of internal control?
A) Authorization of transactions B) Sound personnel policies C) Separation of duties D) Limited access to assets
______ voices are stereotyped as more mature, sexier, and stronger.
a. Higher-pitched b. Louder c. Quieter d. Lower-pitched