Which of the following statements regarding net income transferred to retained earnings is correct()
A. Net income = net income transferred to retained earnings – dividends
B. Net income transferred to retain earnings = net income + dividends
C. Net income = net income transferred to retain earnings + dividends
D. Net income transferred to retain earnings – net income = dividends
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Which of the following is NOT an operating expense()
A. Interest expense
B. Depreciation and amortization
C. Selling, general and administrative expenses
D. Research and development
Which of the following is NOT a section on the cash flow statement()
A. Income generating activities
B. Investing activities
C. Operating activities
D. Financing activities
A__ is when a rich individual or organization purchases a large fraction of the stock of a poorly performing firm and in doing so gets enough votes to replace the board of directors and the CEO()
A. shareholder proposal
B. leveraged buyout
C. shareholder action
D. hostile takeover
Which of the following statements regarding the income statement is INCORRECT()
A. The income statement shows the earnings and expenses at a given point in time
B. The income statement shows the flow of earnings and expenses generated by the firm between two dates
C. The last or “bottom” line of the income statement shows the firm’s net income
D. The first line of an income statement lists the revenues from the sales of products or services