Financial Accouting

The flashcards below were created by user Anonymous on FreezingBlue Flashcards.

  1. Return on equity is measured in terms of
    a percentage
  2. A disadvantage of the corporate form of a business is
    government regulation
  3. In the United State, insider trading is considered
    both unethical and illegal
  4. The board of directors carries out the day-to-day operations of the business
  5. Which of the followng is not a category of investmens?
    collateral securities
  6. The cash amount of purchases and sales of investments appear in which section of the statement of cahs flows?
    Investing activities
  7. Dividends yield equals
    net income divided by dividends per share
  8. Investments are valued on the balance sheet at the original purchase price, even if the price has changed since the date of purchase
  9. Investments with a maturity of less than a year are classified as cash equivalents
  10. If a long-term investment suffers a permanent decline in value, a loss must be recorded, even though the investment has not yet been sold
  11. The price/earnings (P/E) ratio is measured in terms of
  12. Another term for short-term investments is marketable securities
  13. Stockholders elect the board of directors which appoint the officers of a corporation
  14. All of the following are conditions that could affect the valuation of investments on the balance sheet except
    changes in the general purchasing power of the dollar
  15. Gains and losses on th sale of investments appear as adjustments within the operating activities section of the statement of cash flow
  16. Which of the following categories of investments aree debt, bu tnot equity, securities
    Held- to - maturity securities
  17. Which of the following categories of investments can be both debt and equity securities
    trading securities
  18. The dividends yield is measured in terms of "times"
  19. Return on equity equals average stockholders' equity divided by net income
  20. The price/earnings (P/E) ratio is a measure of investors' confidence in a company's future
Card Set
Financial Accouting
Test Questions
Show Answers