Question 32

1.

Which one of the following statements is correct concerning a firm's fixed assets?

Answer

		The market value is the expected selling price in today's economy.
		The market value is affected by the accounting method selected.
		The market value is equal to the initial cost minus the depreciation to date.
		The book value is equal to the market value minus the accumulated depreciation.
		The book value is the greater of the initial cost or the current mar

Question 33

1.

Common-size financial statements present all balance sheet account values as a percentage of:

Answer

		the forecasted budget.
		sales.
		total equity.
		total assets.
		last year's account value.

0.5 points

Question 34

1.

Which one of the following is the maximum growth rate that a firm can achieve without any additional external financing?

Answer

		Du Pont rate
		External growth rate
		Sustainable growth rate
		Internal growth rate
		Cash flow rate