ch12b - Question 1 (1 point) Magenta Company and Green...

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Question 1 (1 point) Magenta Company and Green Company each began operations the same day with similar assets. Magenta Company purchased the assets while Green Company leased the assets on a yearly basis. Which of the following is TRUE? Student response: Student Response Answer Choices a. both companies will report the same amount for assets on the balance sheet b. both companies will report the same cash flow from investing activities c. Green Company will have greater operating leverage d. Magenta Company will report a greater amount of assets on the balance sheet Score: 1 / 1 Question 2 (1 point) Compute net income. Sales $18M Return on assets 15% Asset turnover 1.20 Student response: Student Response Score: 1 / 1 Question 3 (1 point) Seneca Co. purchased a cargo ship in 1990. Following generally accepted accounting principles, the book value of the ship in 2007 would most likely be Student response: Student Response
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Score: 0 / 1 Question 4 (1 point) Which of the following statements is TRUE concerning financial leverage and operating leverage? Student response:
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ch12b - Question 1 (1 point) Magenta Company and Green...

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