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Which of the following is an indication that a company may be recognizing revenue prematurely? Relative to its competitors, the company's: A. asset turnover is

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Which of the following is an indication that a company may be recognizing revenue prematurely? Relative to its competitors, the company's: A. asset turnover is decreasing. B. receivables turnover is increasing. C. days inventory on hand is decreasing. D. days sales outstanding is increasing. Financial analysts can make comparisons between the long-lived assets of two companies, both of which use straight-line depreciation, by computing the average useful life of assets with which one of the following formulas? A. Net depreciable property, plant, and equipment/average useful life. B. Gross depreciable property, plant, and equipment/average useful life. C. Gross depreciable property, plant, and equipment/straight-line depreciation expense. D. Straight-line depreciation expenseet depreciable property, plant, and equipment. True or False X: A company is considering offering for sale one of two bond issues. The two bond issues are equivalent except that one bond pays semi-annual interest while the other bond pays annual interest. The market rate is lower than their coupon rates. The proceeds from the sale of the bond with annual interest payments will be greater than the proceeds from the sale of the bonds with semi-annual payments. Y: The market interest rates have increased since the issue of bonds, and the entire bonds are derecognized before maturity. That generates an accounting loss. A. X is True, and Y is True. B. X is True, and Y is False. C. X is False, and Y is True. D. X is False, and Y is False. A company that has earnings in Year 2 equal to the earnings of Year 1 can improve its Year 2 reported earnings per share by A. selling additional common stock. B. selling additional preferred stock. C. selling shares of treasury stock at a price exceeding what was paid for the treasury stock. D. buying back some of common stock

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