BUS 320 Study Guide - Midterm Guide: Current Liability, Financial Statement, Income Statement
22 May 2011
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The correct answer is e. p. 29: given book values of current assets = , current liabilities = , net fixed assets = ,000, and long-term debt = ; market values of net fixed assets = ,500 and long-term debt = . What is the market value of shareholders" equity? a) b) c) ,000 d) ,100 e) insufficient information is given to calculate market value of equity. The correct answer is c. mv(equity)=500+1500-300-700=1000: the balance sheet is potentially useful to a) suppliers b) managers c) creditors d) investors e) all of the above. The correct answer is e. p29: due to the realization principle in accounting, depreciation deductions should not be included in calculations of cash flows. a) true b) false. The correct answer is e. p31: dividends received by canadian corporations are tax free. a) true b) false.
