True True or False: All publicly traded U.S. companies must provide their shareholders with an annual report each year. 38. For fill-in-the-blank questions press or click on the blank space provided. (Hint: Work Problem 4-16 before answering 4-17, and consider the solution setup for 4-16 as you think about 4-17.) or You can exceed the speed limit to make the pass quick. E. For example, the owner of Company ABC might need to raise capital to fund business expansion. The government owns the factors of production. If the financing of the project involves an equity issue, and if management believes that the equity will sell at a price that is less than its true value, this mispricing is a cost of the project for the existing shareholders. Driving test question about: Which of the following statements about passing a vehicle is NOT true? Expected losses depend on customer equity. False 6. It does not present changes in owners equity.It has only one element which has the effect on owner's equity. D) If the debt to equity ratio is less than 1, the company is financing more assets with debt than with equity. A. Answer true or false to the following statements. Task difficulty c. Self-actualization d. Training. Most companies have the resident expertise to complete an initial public offering (IPO) or first public equity issue. c. Assets are divided into equity and semi-equity … a. freedom b. efficiency c. equity d. innovation Question 2. Which of the following statements about self - regulation by media is true? C. Expected profits depend on customer equity. Which of the following is not a blockage (individual or organizational) to the effort — performance expectancy? All of the following are elements of a Balance Sheet except. C. Stockholders' equity results only from contributions of the owners. Which of the following statements is FALSE? Which of the following statements is true about CASH? C) Having more current assets than current liabilities will yield a current ratio less than 1. Which of the following statements about customer equity is FALSE? B)To understand how call provisions affect the price of a bond, we first need to consider when an issuer will exercise its right to call the bond. Private investors. Owners have unlimited liability for corporate debts. 242. Stockholders' equity is the shareholders' residual interest in the company resulting from the difference in assets and liabilities. The company currently has no debt in its capital structure. Explain the potential reasons this may be true or false Which of the following statements is true? revenues Correct. Which of the following statements is CORRECT? The company's basic earning power is 15 percent. revenues are found in the income statement ... False Correct. b) Thedebt cost plus risk premium method is one way to estimate the cost of equity. Bond financing is better than stock financing for investors because income from bonds is taxed on a more favorable basis than income from stock. 1. (ii) The equity Shareholders get the residual profit of the firm. Which of the following statements about stockholders' equity is false? a) Thecost of debt is the interest rate set on debt financing, while the cost ofequity is defined similarly; it is the rate of return required by equityinvestors. You may have some cash you want to put into the business yourself, so that will be your initial base. Which of the following statements about customer equity is FALSE? 38. Which of the following statements regarding command economies is FALSE? Character loan C. Line of credit D. Installment loan C) reduce the interest rate on debt. Which of the following statements is false? If you don't see any interesting for you, use our search form on bottom ↓ . accounts receivable ... 2. A. True 4. True 2. a. Statement of Cash Flows: Reports on all of the company’s activities that affect its cash position over a period of time . False 3. Choose one answer. 1. A. A. Capital is more easily accumulated than with most other forms of organizations. Choose one answer. 2. Which of the following statements is True (T) or False (i) The financing decision affects the total operating profits of the firm. b. A company is said to go "public" when it opens up its ownership structure to the general public through the sale of common stock. Which of the following is not a form of cash flow financing? D. Question 3 (4 points) Ptarmigan Travelers had sales of $480,000 in 2010 and $420,000 in 2011. A. For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. D. It is the cash left over after meeting debt payments and paying taxes. a. D. and possible answers include: Avoid passing on the right unless you can do it safely. [3.2] Ownership rights cannot be easily transferred. False 7. E. statement of operating position. Maybe you also have family or friends who are interested in your business idea and they would like to invest in your business. ... Stock are a form of equity ownership, not debt financing. Which of the following statements is FALSE about the current ratio? Network standards regarding acceptable advertising have remained constant over the past 30 to 40 years. B. Firms U and L each have the same amount of assets, and both have a basic earning power ratio of 20%. equity is found on the balance sheet . 11. C. Expected profits depend on customer equity. a. A. equity Incorrect. d. Statements a and c are correct. B. The possibility of bankruptcy will do all of the following except: A) increase financial distress costs. The federal government sells bonds and securities to obtain financing. (Points: 3) A firm that employs financial leverage will have a higher equity multiplier than an otherwise identical firm that has no debt in its capital structure. Central planners decide what is produced. D. The higher the debt to equity ratio, the lower the company's financial risk. 1 A Grzeszczak 2016. E. If you have difficulty answering the following questions, learn more about this topic by reading our Financial Statements … It is a separate legal entity. All of the following are current assets except. the costs of both debt and equity financing. If the parts of a firm’s marketing program work well together, it should increase the firm’s customer equity. A. expenses, changes in owner’s equity, and resulting. A) Instead of using the dollar amounts, the current ratio makes it easier to compare several companies. Which of the following statements about stockholders' equity is false? If the parts of a firm’s marketing program work well together, it should increase the firm’s customer equity. True 5. Assets are divided into current and long-term categories. E. None of the above. 10. A private investor is anyone who invests in your business and is not affiliated with a bank. C) If the debt to equity ratio is greater than 1, the company is financing more assets with equity than with debt. Question 2 - Cash Flows: Concepts. True or False: Examples of notes are descriptions of the significant accounting policies and methods used in preparing the statements, explanations of contingencies, and various statistics. Kimberly uses $500,000 of 12.0 percent debt financing, and the cost of equity to an … A. B) The current ratio is used to evaluate a company's ability to pay current obligations. Firm L’s debt has a before-tax cost of 8%. 6. Firm U is unleveraged, i.e., it is 100% equity financed, while Firm L is financed with 50% debt and 50% equity. The balance sheet has upper and lower (or left and right) sections. A. If the debt to equity ratio is greater than 1, the company is financing more assets with equity than with debt. C. shareholders' equity statement. B. Both firms have positive net income. Which of thefollowing statements regarding the cost of equity is most correct? A. On this page you can read or download which of the following statements about equity financing is false everfi investing basics in PDF format. Expected losses depend on customer equity. The firm's current accounts remained constant. B. A private investor could be an employee, local business owner, or supplier. Owners are not agents of the corporation. Equity sensitives do not react to inequity as equity theory describes b. B. The Kimberly Corporation is a zero growth firm with an expected EBIT of $100,000 and a corporate tax rate of 30 percent. A. 242. b. 2. B) The higher the debt to equity ratio, the greater the company's financial risk. (iii) There is no difference of opinion on the relationship between capital structure and value of the firm. The following are common types of equity financing to consider for your small business. D. Customer equity benefits customers but not the company. Which of the following statements is CORRECT? Stockholders' equity is the shareholders' residual interest in the company resulting from the difference in assets and liabilities. It has high yield potential -FALSE B. The objective of financial statements is to provide information about an entity's assets, liabilities, equity, income and expenses that is useful to financial statements users in assessing the prospects for future net cash inflows to the entity and in assessing management's stewardship of the entity's resources. Passing a vehicle is not a form of equity financing to consider for your small business its capital.. Sheet has upper and lower ( or left and right ) sections for your small business cash financing! 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