required answers for the following Questions

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Vishnu (Querist)
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20 February 2009 1)Which one of the following ratios is a common analytical tool used by merchandise corporations, but not by service corporations?

a)Gross margin percentage
b)Earnings per share
c)Current ratio
d)Profit margin

Answer:

2) _____________ is concerned with the maximization of a firms earnings after taxes

a)Shareholder wealth maximization
b)Profit maximization
c)Stakeholder maximization
d)EPS maximization

Answer:

3)Shareholder wealth in a firm is represented by

a)The number of people employed in the firm
b)The book value of the firms assets
c)The amount of salary paid to its employees
d)The market price per share of the firms common stock

Answer:

4)The original cost of an asset less its accumulated depreciation is called
a)Book value
b)Historical cost
c)Present value
d)Current market value

Answer:

5)A minority interest exists when
a)A parent company owns all the shares in a subsidiary company
b)One company owns only 15% in another company
c)A parent company own less than 100% of the shares in a subsidiary company
d)An individual own shares in a company which is the associate of another company

Answer: