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Is it true that Retained earnings have no cost to the firm?
Ammuttan
Yes
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∙ 10y ago
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Is this true or false - Treasury stock transactions never increase retained earnings or net income?
true. Treasury stock never affects Net Income. Treasury stock may decrease Retained earnings but it does not increase it.
True or false The repayment of a loan reduces the borrowing companys retained earning?
Yes
Why are equity earnings usually greater than cash flow generated from the investment?
true
Retained earning is to be deficit when the accumulation of losses exceed the accumulation at the end of the year it is true?
false
True or false FICA taxes and federal income taxes are levied on employees earnings without limit?
False and True, in that order. FICA has limits, Fed inc doesn't.
Is this true or false - Treasury stock transactions never increase retained earnings or net income?
true. Treasury stock never affects Net Income. Treasury stock may decrease Retained earnings but it does not increase it.
Is it true that when the board of directors declares a cash or stock dividend this action decreases retained earnings?
yes it is..
The risk-free rate of return used to determine a firm's cost of capital will not vary depending upon the financial and operating risk level of the firm?
That is NOT true.
Colonial governors retained powers and prerogatives that the king no longer had?
True
How true about firm 24k incregistration form?
so true believe me
Are the boundaries between the five areas of chemistry firm?
true
Which statement about the government that took control after the shah is not true?
"Women retained the rights they had under the shah" is not a true statement.
Is it true that if a firm is profitable its survival is guaranteed?
No. A lot of things can cause a profitable firm to collapse.
Do you agree or disagree with the following statement when marginal revenue equals marginal cost total cost equals total revenue and the firm makes zero profit?
No it is not true. MC=MR it's "only" the condition of optimization of the firm. This is the condition under which the firm chooses the best quantity to produce given its cost structure. Under this condition you are sure that given that structure the firm maximizes its profits. But this does not implies that the firm is actually making profits(f.e. it could miximize its profits simply making a loss of -21 instead of -22). To be sure of that you have to consider the total cost function. The total cost function is defined as: TC=qxVC+FC than you have to consider the revenue function TR=qxP to see if the firm it's actually making profits you have to calculate TR-TC=Profit note that you can't find the total cost function by the marginal cost function. q=quantity VC=variable cost FC=fixed costs P=price of item sold
What is the position of supernormal profits for a firm that is a monopoly?
true
True or false The repayment of a loan reduces the borrowing companys retained earning?
Yes
Is the statement 'Often the needs of a firm's various stakeholders will conflict' true or false?
true
