Sophia Unit 1 Milestone 1 question with complete solution 2022

Sophia Unit 1 Milestone 1 question with complete solution 2022Which of the following is an example of an agency conflict? A. Board oversight B. Managerial self-dealing C. Shareholder voting rights D. Manager's salary B. Managerial self-dealing If net income is $90 million and total assets are $480 million, then the ROA is __________. A.25.00% B. incalculable without EBIT data C. incalculable without gross profit data D. 18.75% D. 18.75% Xander is looking for ways to reduce his non-operating expenses to improve his company's overall financial performance, so he consults his most recent income statement. Which of the following should he focus on? A. Amortization B.Depreciation C. Wages D. Income taxes A. Amortization For which company can trend analysis be most useful? A software company whose business model and accounting practices have remained stable over time A mining company that recently changed its business model, but not its accounting practices A banking company that recently changed its accounting practices, but not its business model A retail company that recently changed its accounting practices and its business model A software company whose business model and accounting practices have remained stable over time Consider the following information: Total current assets$78,632Deferred income taxes$3,210Inventories$9,823Prepaid expenses$1,050Other assets$3,890Total current liabilities$32,043 What is the quick ratio? 2.24 2.32 2.45 2.15 2.15 Which of the following is true of ethics and its application to the business environment? Employers prefer to hire individuals whose ethics conflict with that of the business organization. The ethical norms and values of a business can have a powerful influence on its employees. Conflicts rarely occur between an individual's ethics and a business organization's ethics. Personal values have no place in business, where decisions should be made according to organizational values and norms. The ethical norms and values of a business can have a powerful influence on its employees. Under GAAP, how would dividends paid to company stockholders be accounted for on the statement of cash flows? As an increase in cash flow from operations As an increase in cash flow from financing As a decrease in cash flow from financing As a decrease in cash flow from investment As a decrease in cash flow from financing What must be forecasted first in order to prepare the pro forma income statement? Expenses Net income Cost of goods sold Sales Sales In the United States, the role of corporate governance is to maximize __________. fundamental value and shareholder value shareholder value and stakeholder value market value and stakeholder value market value and shareholder value market value and shareholder value Financial forecasting answers the question "__________" What will our sales be? Do we have enough production capacity? What are our goals? When should we begin? What will our sales be? The pro forma balance sheet reflects the impact of a company's strategic plan on its __________. assets and liabilities revenue and expenses share price revenue and expenses assets and liabilities Which statement best characterizes the impact of regulatory changes on corporate governance since the 1990s? Corporate governance has become untenable due to requirements that all conflicts of interest be catalogued. Oversight by boards of directors and independent auditors has decreased, allowing for greater corporate flexibility. Corporate transparency and accountability have increased through revised reporting and oversight requirements and stiffer penalties for fraud. New regulations require corporate managers to prioritize the interests of external stakeholders over those of shareholders. Corporate transparency and accountability have increased through revised reporting and oversight requirements and stiffer penalties for fraud. What is one significance of the DuPont equation? It tells a company whether its share price is correctly valued. It allows a company to increase its stock price. It tells a company how well it uses investment funds to generate earnings growth. It allows a company to compare itself to companies in unrelated industries. It tells a company how well it uses investment funds to generate earnings growth. What is finance? The process of communicating financial information about a business The social science that analyzes the production, distribution and consumption of goods and services The study of a business's past financial decisions The study of how to allocate assets to maximize returns The study of how to allocate assets to maximize returns A potential investor in Cristian's company wants to know how much money was paid in dividends in the last reporting period.What type of financial statement should he look at? Balance sheet Cash flow statement Income statement Statement of changes in equity Statement of changes in equity Select the option that reflects how revenue is typically organized on an income statement. Sales Cost of goods sold Other revenue Cost of goods sold Sales Other revenue Sales Other revenue Cost of goods sold Cost of goods sold Other revenue Sales Sales Cost of goods sold Other revenue If a company has a higher than usual cost of goods sold in a year, what potential effect does that have on its taxes? It potentially reduces them as a tax deduction. It potentially reduces them as a tax credit. It potentially increases them through declining balance amortization. Cost of goods sold does not affect corporate taxes. It potentially reduces them as a tax deduction.