Q21. Which of the following accounts belongs in the equity section of a balance sheet?
a. retained earnings
c. long-term debt
Q22. Two companies have identical assets and operating activities. Which of the follow statements is true?
Q41. Assume that an investor is offered a choice of a risk-free government bond that is expected to return 3.5% or
a high-risk corporate stock. According to one of the principles of finance, what would induce the investor to
purchase the corporate stock?
Q31. Denver Systems has total assets of $1,000,000; common equity of $400,000; a gross profit of $800,000; total
operating expenses of $620,000; interest expense of $20,000; income taxes of $74,000; and preferred dividends of
$30,000. What is Denver Syste
Q11. An example of a secondary market transaction involving a capital market security is
a. a new issue of a security with a very short maturity.
b. a new issue of a security with a very long maturity.
c. the transfer of a previously-issued security with