BUS 401 QUES. 1

1.	Question :	Revenue recognition rules state which of the following?

 	

 	Points Received:	1 of 1
 	Comments:	



Question 2.	Question :	The income statement shows which of the following?

 	

 			


Question 3.	Question :	When company managers decide which assets to invest in, the value that matters is:

 	



Question 4.	Question :	Which is not one of the three principles that accrual accounting is based on?

 	



Question 5.	Question :	A company- balance sheet shows which of the following?

 	Student Answer:		  A dominant seller sets prices

 			  A company- financial position over a period of time, say, the calendar year 2013
 		 	  A company- financial position at a point in time, say, December 31, 2013
 			  Revenues for the period and matching costs

 	Instructor Explanation:	The answer can be found in Section 2.2: A Review of Financial Statements.


 	Points Received:	1 of 1
 	Comments:	



Question 6.	Question :	The value of an asset is based on four characteristics—cash flows, time, risk, and opportunity costs—but in many situations we can estimate an asset- value by:

 	


Question 7.	Question :	In publicly traded corporations the goal of the financial manger would be:

 	



Question 8.	Question :	On the typical balance sheet, the right-hand side shows:

 	


Question 9.	Question :	In an efficient market most investors earn:




Question 10.	Question :	Over the past 50 years, stocks listed on the NYSE (New York Stock Exchange) have: