Which one of the following statements is correct a

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37. Which one of the following statements is correct? A. Net working capital can be positive, negative, or zero. B. Accounts payable is the amount due from customers. C. Depreciation increases total assets. D. The amount of retained earnings is found on the income statement. E. Bonds are included in net working capital. BLOOMS TAXONOMY QUESTION TYPE: COMPREHENSION LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 002 #19 SECTION: 2.1 TOPIC: NET WORKING CAPITAL TYPE: CONCEPTS
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38. Scenic Images paid an annual dividend of $1.85 per share last year. Management just announced that future dividends will increase by 3 percent annually. What is the amount of the expected dividend in year 4? BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 007 #52 SECTION: 7.1 TOPIC: DIVIDEND TYPE: PROBLEMS 39. Which of the following represent problems encountered when analyzing financial statements? I. Conglomerates do not fit neatly into any one industrial classification. II. Firms use different methods of accounting. III. Firms with seasonal sales may have different fiscal years. IV. Many firms have global operations. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 003 #35 SECTION: 3.5 TOPIC: FINANCIAL STATEMENT ANALYSIS TYPE: CONCEPTS 40. The security that represents the residual ownership of a firm and has no priority in bankruptcy is called: BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 007 #4 SECTION: 7.2 TOPIC: COMMON STOCK TYPE: DEFINITIONS
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41. Sonny borrowed $5,500 four years ago at an annual interest rate of 10 percent. The loan term is 7 years. Since he borrowed the money, Sonny has been making annual payments of $550 to the bank. Which type of loan does Sonny have? A. amortized B. compounded C. interest-only D. complex E. pure discount BLOOMS TAXONOMY QUESTION TYPE: COMPREHENSION LEARNING OBJECTIVE NUMBER: 3 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 005 #31 SECTION: 5.4 TOPIC: INTEREST-ONLY LOAN TYPE: CONCEPTS 42. Which one of the following ratios indicates how long a firm can pay its bills given its current cash balance? BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 003 #13 SECTION: 3.2 TOPIC: CASH RATIO TYPE: CONCEPTS
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