The difference between average and marginal tax rates is that

A. Average tax rate is applied to income at the end of each year, whereas marginal tax rate is applied to operating income at the end of each month.

B. Average tax rate is based on average annual earnings, whereas marginal tax rate is based on average monthly earnings.

C. Average tax rate is calculated on total taxable income, whereas marginal tax rate is calculated on next dollar earned.

D. Average tax rate is calculated on next dollar earned, whereas marginal tax rate is calculated on total taxable income.

E. Average tax rate is applied to personal income, whereas marginal tax rate is applied to corporate income.

Which of the following is a use of cash?

A. An increase in accounts payable.

B. A decrease in fixed assets.

C. An increase in accounts receivable.

D. An increase in common shares.

E. An increase in bonds payable.

The goal of financial management for all for-profit companies is to:

A. Maximize profitability.

B. Minimize risk.

C. Maximize value of owners' equity.

D. Maximize market share.

E. Maximize net cash flows

Financial statement analysis is useful for a variety of stakeholder groups such as lenders, customers, competitors, investors and firm management

True or False