BUS 401 Week 1 Quiz

1. When company managers decide which assets to invest in, the value that matters is

2. In an efficient market most investors earn:

3. Revenue recognition rules state which of the following?

4. Why is depreciation expense added back to net income to get a rough estimate of cash flow?

5. Time is a factor when determining the value of a possible investment.  As investors, all else being equal, we value investments:

6. To test the theory of market efficiency, economists:

7. Western States Transport had net income of $337,000 in 2012. It had depreciation expense during 2012 of $464,000. What is a rough estimate of the company’s cash flow for 2012?

8. The income statement shows which of the following?

9. Wealth is created when a company

10. The accounting method you use in your checkbook is best described as