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The cost of
a. the issuance cost.
b. agency costs of
c. the
d. the trust fund doctrine.
Step by step
Solved in 2 steps
- Which is a component of stockholder's equity? a. Sinking funds b. Deferred charges c. Accumulated other comprehensive income d. Realized capitalWhich of the following best describes the possible result of treasury share transactions? a. May decrease but not increase net income. b. May increase net income if the cost method is used. c. May increase but not decrease retained earnings. d. May decrease but not increase retained earnings.Is there a consequence for reported profit or loss if a particular financial instrument, for example, a preference share, is designated as debt rather than equity? Explain the consequence.
- Are assets: (a) always lower than liabilities or (b) financed by the stockholders' equity?Which of the following statements is not correct? Group of answer choices A)Purchasing fixed assets using cash decreases the current ratio. B)Accruing a commission expense will affect the net profit margin ratio. C)Increasing the financial leverage ratio guarantees the net profit margin ratio will increase. D)Purchasing treasury stock results in a decrease in the current ratio. E)All of the above are correctQ . Which of the following statements is not true?a) The return on shareholders’ funds can be calculated as profit after tax /total equity x 100b) The dividend cover ratio can be calculated from the Income statement andthe statement of cash flows and the answer will be the samec) The interest cover ratio can be calculated from the income statement andthe statement of cash flows and the answer will be differentd) The operating profit margin is also called the net profit margin
- Which of the following item does not appear under the head ‘Reserves and Surplus’ in Balance Sheet a. General reserve b. Sinking Fund c. Unclaimed Dividend d. Securities PremiumCapital account transactions are not affected by Select one: a. Investment diversification b. Risk c. Rate of return d. All the answers are correct e. Speculation1. What is the differences between restricted and unrestricted investment account? (A) Right to commingle funds (B) Right to share profits (C) Right to guarantee returns (D) Right to additional equity shares
