Answer the following statements true (T) or false (F)
1. Equity investments with no significant influence must be adjusted at the end of the year and reported at fair value.
2. For equity investments with no significant influence, the unrealized holding gain or loss is reported as a component of stockholders' equity.
3. The rate of return on total assets is a ratio that measures a company's success in using its assets to earn income.
4. The rate of return on total assets is calculated by first subtracting interest expense from net income and then dividing the result by average total assets.
5. A company can finance its assets by receiving cash or other assets from stockholders.
6. Creditors invest in a company and hope to receive a return on their investment.
7. A 9% rate of return on total assets means that the company earned $0.09 for each $1.00 invested in the company's average long-term assets.
1. TRUE
2. FALSE
3. TRUE
4. FALSE
5. TRUE
6. FALSE
7. FALSE
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A note with an explicit interest rate stated on the face of the note is a(n) ____________________
Fill in the blank(s) with correct word
Retailers often end their fiscal year that ends
a. during a slack season. b. during the peak of the busy season. c. at different times each year, depending on the tax consequences. d. on September 30.
What is off-balance-sheet financing? How are they structured? How are they treated under U.S. GAAP and IFRS
Although short-term interest rates have historically averaged less than long-term rates, the heavy use of short-term debt is considered to be an aggressive current asset financing strategy because of the inherent risks of using short-term financing.
Answer the following statement true (T) or false (F)