FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- What is the real return? Multiple Choice The after-tax return on assets. The pre-tax return on assets. The inflation-adjusted return on assets. The interest-adjusted return on assets. None of the choices are correct.arrow_forward19. Gross profit margin is a better measure of profitability than return on equity (ROE). Select one: True or Falsearrow_forward9arrow_forward
- Which one of the following is an advantage of LIFO? a. In periods of rising prices, less income taxes are paid b. In periods of rising prices, more holding gains are reported in net income c. Record keeping and financial statement preparation are easier d. Conservative income statement and balance sheet disclousures result from falling pricesarrow_forwardAlthough the income statement is a record of past achievement, the calculations required forcertain expenses involve estimates of the future.’ What does this statement mean? Can you thinkof examples where estimates of the future are used?arrow_forwardwhich one is correct please confirm? QUESTION 9 In using the percentage of sales forecasting method, the assumption is that ______________. a. there is a direct relationship between notes payable and sales b. accounts payable will not increase proportionally with sales c. there is a direct relationship between long-term debt and sales d. inventories will increase proportionately with salesarrow_forward
- Which of the following is not a factor in producing earnings forecasts? a) Estimating the level of dividends b) Separation of recurring and nonrecurring components c) Recognizing potential earnings management d) Recognizing potential income smoothingarrow_forwardWhy does Non-GAAP earnings are controversial?arrow_forwardCould I get the entire answer please? Earnings before taxes, net income and taxes?arrow_forward
- EBIT is equivalent to profits after taxes. true or false?arrow_forwardWhich of the following would not be used as a summary performance measure when using market multiples to determine value? Stock price Net operating assets Net operating profit after tax Book valuearrow_forwardFIFO and weighted average. But what if a company wants to use LIFO to report its inventory because of the significant tax benefit? How could dollar-value LIFO help them use FIFO for managerial purposes but LIFO for financial statement reporting?arrow_forward
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