28) Which transaction/event best describes the journal entry: DR CR CASH 45,000 COMMON STOCK 45,000 a) A
Question:
28) Which transaction/event best describes the journal entry:
DR | CR | |
CASH | 45,000 | |
COMMON STOCK | 45,000 |
a) A company increases the balance of their cash account due to positive earnings generated during the accounting period.
b) A company sells inventory to a customer in exchange for cash.
c) A company receives cash from an investor in exchange for common stock.
33) The shareholders of your company are most interested in financial performance as it relates to the companys ability to generate net income in relation to shareholders contributed capital. Given this, what financial statement ratio would you want to pay attention to?
a) Debt-to-Equity
b) Return on Equity
c) Sales Growth
17)
(Reported in millions)
| Intel | Infineon |
Total Assets | 123,249 | 11,748 |
Total Equity | 69,019 | 6,657 |
Total Revenue | 62,751 | 8,343 |
Net Income | 9,601 | 933 |
Despite these two companies having very similar return on equity, how they achieved their 2017 ROE is quite different. How?
a) Infineon was less profitable, but relied less on debt.
b) Intel was less profitable, but relied less on debt.
c) Intel used their assets more effectively; Infineon used leverage more efficiently.
d) Intel used their assets more effectively; Infineon was more profitable.
e) Intel was more profitable; Infineon used their assets more effectively.