Accounting for Business Stability

What is the process of determining if a new project is worth pursuing for a company?

• Capital Expenditures

• Capital Budgeting

• Cash Flow

• Acquisition

The takeover of one company/entity by another is known as ______.

• Acquisition

• Conglomerate Merger

• Concentric Merger

• Corporate Bond

What does the Debt Ratio measure in a company?

• Total assets to total liabilities

• Total liabilities as a percentage of total assets

• Total equity to total debt

• Total sales to total assets.

The Debt/Equity Ratio compares total debt to what?

• Total assets

• Total sales

• Total equity

• Total liabilities

Depreciation indicates how much of an asset’s value has been ______ over its useful life by a company.

• Increased

• Expensed

• Saved

• Invested

What does the Discount Cash Flow determine?

• Company's past value

• Company's current value according to future cash flow

• Company's equity value

• Company's asset value.

Dividends are the distribution of a portion of a company’s earnings, determined by whom?

• Shareholders

• Board of directors

• Employees

• Customers

A Dividend Reinvestment Plan allows investors to reinvest their cash dividend by purchasing what?

• Bonds

• Additional shares

• Real estate

• Commodities

The Double-Declining-Balance Method is used to accelerate what in a company?

• Growth

• Depreciation

• Sales

• Investment

The Enterprise-Value-to-Sales Ratio measures the comparison of the enterprise value of a company to what?

• Company's assets

• Company's liabilities

• Company's sales

• Company's equity