ACCT 5312| Accounting Exam #2
Look forward to the day when you will have accumulated $5,000, and assume that you have
decided to invest that hard-earned money in the common stock of a publicly owned corporation.
What data about that company will you be most interested in out of:
Location of the production plant
Market price
Earnings per share
Cash dividends per share
P/E ratio
Salaries and wages paid to employees ** Answ** Market price
Earnings per share
Cash dividends per share
P/E ratio
Look forward to the day when you will have accumulated $5,000, and assume that you have
decided to invest that hard-earned money in the common stock of a publicly owned corporation.
How will you arrange those data so they are most meaningful to you?
Chart and graphic format
Tabular and chart format
Tabular and graphic format ** Answ** Tabular and graphic format
, What information about the company will you want on a weekly basis, quarterly basis, and
annual basis?
Market price
Earnings trends
Dividend trends ** Answ** Market price - weekly
Earnings trends - both quarterly and annually
Dividend trends - both quarterly and annually
How will you decide whether to sell, hold, or buy some more of the firm's stock?
Based on the wish of the corporation
Based on stock price performance
Based on quantity of stock purchased ** Answ** Based on stock price performance
Effect of:
Split the common stock 2 for 1
on:
Book value per share of common stock ** Answ** Decrease
Effect of:
Collected accounts receivable
On:
Number of days' sales in accounts recievable ** Answ** Decrease
Look forward to the day when you will have accumulated $5,000, and assume that you have
decided to invest that hard-earned money in the common stock of a publicly owned corporation.
What data about that company will you be most interested in out of:
Location of the production plant
Market price
Earnings per share
Cash dividends per share
P/E ratio
Salaries and wages paid to employees ** Answ** Market price
Earnings per share
Cash dividends per share
P/E ratio
Look forward to the day when you will have accumulated $5,000, and assume that you have
decided to invest that hard-earned money in the common stock of a publicly owned corporation.
How will you arrange those data so they are most meaningful to you?
Chart and graphic format
Tabular and chart format
Tabular and graphic format ** Answ** Tabular and graphic format
, What information about the company will you want on a weekly basis, quarterly basis, and
annual basis?
Market price
Earnings trends
Dividend trends ** Answ** Market price - weekly
Earnings trends - both quarterly and annually
Dividend trends - both quarterly and annually
How will you decide whether to sell, hold, or buy some more of the firm's stock?
Based on the wish of the corporation
Based on stock price performance
Based on quantity of stock purchased ** Answ** Based on stock price performance
Effect of:
Split the common stock 2 for 1
on:
Book value per share of common stock ** Answ** Decrease
Effect of:
Collected accounts receivable
On:
Number of days' sales in accounts recievable ** Answ** Decrease
