Which one of the following is most apt to align management's priorities with shareholders' interests?
a. Increasing employee retirement benefits
b. Compensating managers with shares of stock that must be held for three years before the
shares can be sold
Which one of the following transactions will increase the liquidity of a firm?
Cash purchase of new production equipment
Payment of an account payable
Cash purchase of inventory
Credit sale of inventory at cost
Cash payment of employee wage
Delivery trucks are classified as:
tangible fixed assets.
intangible fixed assets.
The accounting statement which measures the revenues, expenses, and net income of a firm over a
You are comparing two annuities. Annuity A pays $100 at the end of each month for 10 years. Annuity B
pays $100 at the beginning of each month for 10 years. The rate of return on both annuities is 8 percent.
Which one of the following statements is correc
Tom earned $120 in interest on his savings account last year. Tom has decided to leave the $120 in his
account so that he can earn interest on the $120 this year. This process of earning interest on prior
interest earnings is called: