Interest is a tax-deductible expense. This causes firms to have a preference for financing with: bonds
Trident Corporation had the following cash flows in the current year. Which of the following will be
Which of the following is a cash flow from investing activities? Purchase of plant and equipment
The cost principle states that an asset should be recognized on the balance sheet at the: historical cost
The generally accepted accounting principles (GAAP) are set by: The Financial Accounting Standards
United Brands Corp. just completed their latest fiscal year. The firm had sales of $16,650,000.
Depreciation and amortization was $832,500, interest expense for the year was $825,000, and selling
general and administrative expenses totaled $1,665,000 for the year, and cost of goods sold was
$9,990,000 for the year. Assuming a federal income tax rate of 34%, what was the United Brands net
Cost Principle – asset reflects historical cost
Which of the following is an assumption of fundamental accounting principles? Revenue is
recognized only when the sale is virtually completed and the exchange value for the goods or
services can be reliably determined.
Which of the following balance sheet items generally takes the longest time to convert to cash?
Which of the following would appear as part of equity on a company’s balance sheet? Common stock