Asset Turnover, Profitability of a Company, Common & Stock
Not what you're looking for?
4. Asset turnover calculations:
a. communicate information about how promptly the entity pays its bills.
b. should be evaluated by observing the turnover trend over a period of time.
c. are made by dividing the average asset balance during the year by the sales for the year.
d. are made by dividing sales for the year by the asset balance at the end of the year.
5. An individual interested in making a judgment about the profitability of a company should:
a. review the trend of working capital for several years.
b. calculate the company's ROI for the most recent year.
c. compare the company's ROI for the most recent year with the industry average ROI for the most recent year.
d. review the trend of the company's ROI for several years.
6. When a corporation has both common stock and preferred stock outstanding:
a. dividends on preferred stock are paid only if the company has current earnings.
b. preferred stockholders receive the same dividend per share as common stockholders.
c. dividends on preferred stock must be paid before dividends on common stock can be paid.
d. dividends on preferred stock are paid only if dividends are to be paid on the common stock.
Purchase this Solution
Solution Summary
The solution discusses the asset turnover, profitability of a company and the preferred stock.
Solution Preview
4. b. should be evaluated by observing the turnover trend over a period of time.
That would tell us about the efficiency in the use ...
Purchase this Solution
Free BrainMass Quizzes
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Operations Management
This quiz tests a student's knowledge about Operations Management
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.