Whist is the resie aife eina fe of a finised liability compon? a. It is easier to borrow money. b. There are less costs c. Business owners can only lose what they put into the business in the first place d. It can minumise depreciation QUESTION 5 Makiag people rudundaent is oftes a way ot. Increasing salo Reducing cost! Reducing liabilities Increasing assets Bibble Lid has a target capital structure of 70 per cent equity, 10 per cent preference sharei, and 20 per cent debt. fte cost of equity is i3 per cent, coet of preference shares is 5 per cent ind the cost of debt is 9 per cent. What is Bork Led's Weighted Average Cost of Capital? a. 11.4% b. 12.1% c. 11.2% d. 10.8% QUESTION 7 Chek Save and Submit fo sawe and submit. Chick Sawe All Answers to saue all ansavers. Which of the following provide frameworks and accounting policies so that the financial statements of different enterprises become comparable? a. Business Standards b. Accounting Standards c. Market Standards d. None To be useful, financial information should be: a. Relevant, even if not a taithful representation of the underlying phenomencen b. Relevant and a faithful representation of the underlying phenomenon c. Understandable d. A faithful representation, even if not rolevant The statement in the annual report that a company is a 'going concern' indicates: a. That shareholders lost their confidence in the management of the firm b. Decreasing share prices c. That management is worried about the ability of the company to meet all of its obligations immediately d. The company is able to continue in business for the foreseeable future Assots are rocorded at their original purchase price according to the: a. Materiality principle b. Historical cost priviciple c. Cost bonefit principle d. Consistency principle