1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lady bird [3.3K]
3 years ago
10

Which of the following is not a true statement? a. Companies that are believed to have high bankruptcy risk generally receive lo

w credit ratings and must pay a higher interest rate for borrowing. b. As a company's level of debt increases, the risk of bankruptcy increases. c. Interest expense incurred when borrowing money, as well as dividends paid to stockholders, are both tax-deductible. d. The mixture of liabilities and stockholders' equity a business uses is called its capital structure.
Business
2 answers:
Kisachek [45]3 years ago
8 0

Interest expense incurred when borrowing money, as well as dividends paid to stockholders, are both tax-deductible is not a true statement. It does not involve other companies getting payed for one companies sales.

3241004551 [841]3 years ago
3 0

Answer: Option C

Explanation: In case of companies having both debt and equity in its capital structure only the interest paid on debt is deductible to tax and the dividends distribution to stockholders is done from the net income which is computed after deducting tax.

Thus, from the above explanation we can conclude that option c is incorrect statement.

You might be interested in
On April 1, Fisher Corporation borrowed $400,000 from its bank by signing a 9%, 5-year note payable. The note calls for 60 month
Andre45 [30]

Answer:

a)     3,000

b) 396,850

c)      2,976.38

d)  393,873.62‬

Explanation:

a) principal x rate x time = interest

 400,000 x 0.09 x 1/12 =  3,000

b) 6,150 - 3,000 = 3,150 principal payment

400,000 - 3,150 = 396,850

c)  principal (carrying value) x rate x time = interest

 396,850 x 0.09 x 1/12 =  2,976.38

d) 396,850 - 2,976.38 = 393,873.62‬

3 0
3 years ago
On January 1, 2019, in a merger transaction, Maxi Company paid $371,000 in cash for 100% of the outstanding common stock of Mini
boyakko [2]

Answer:

$224,000

Explanation:

Goodwill from acquiring Mini Company = Cash consideration paid - Fair value of Mini Company's plant and equipment = $371,000 - $147,000 = $224,000

The net increase in Maxi's assets only after paying the cash for Mini is $224,000 i.e. the goodwill from acquiring Mini Company.

8 0
3 years ago
When Rita Thomas’s clothing company began to market its line of inexpensive cotton shirts in Africa, it assumed that it would be
Jlenok [28]

Answer:

foreign environment (uncontrollable

5 0
3 years ago
P19 - 104. in applying the lower of cost or market method to inventory valuation, market is defined as:
vlabodo [156]
<span>lower-of-cost-or-market It is inconsistent because losses are recognized but not gains. b. It usually understates assets. c. It can increase future income. "market" in the lower-of-cost-or-market rule be more than estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal. Designated market value is always the middle value of replacement cost, net realizable value, and net realizable value less a normal profit margin Lower-of-cost-or-market is most conservative if applied to individual items of inventory. the rationale behind the ceiling when applying the lower-of-cost-or-market method to inventory is to prevent overstatement of the value of obsolete or damaged inventories.</span>
8 0
3 years ago
If you decide to take a break and go for a hike in order to focus less consciously on the creative process, which stage is the c
liberstina [14]

Answer: Incubation

Explanation: In the incubation stage the person moves away from the problem and gives space to the mind to search for a solution. An example is going for a walk to relax your mind a bit and ideas flow better.

8 0
3 years ago
Other questions:
  • Havermill co. establishes a $460 petty cash fund on september 1. on september 30, the fund is replenished. the accumulated recei
    10·1 answer
  • Suppose that for the population of uncg students, the mean of gpa is 3.46 and the median of gpa is 3.02. if you randomly select
    13·1 answer
  • The extent to which the income from individual transactions is affected by fluctuations in foreign exchange values is known as
    9·2 answers
  • If bankruptcy were to​ occur, ________ would have the first claim on assets.
    11·1 answer
  • Baxton courier services recently equipped all of its employees with electronic tablets in order to track the whereabouts of the
    15·1 answer
  • Some americans argue that _____ should be used to keep domestic wages high and unemployment low.
    5·1 answer
  • Which of the following does not represent a copyright?
    15·1 answer
  • The Jones are a married couple and have always filed joint tax returns. On May 18, 2017, the couple was assessed with tax defici
    6·1 answer
  • When the market breaks through the moving average line from below, a technical analyst would probably suggest that it is a good
    9·1 answer
  • the ceo of what company stepped down this week, after having co-founded the business and led it from 2006-2008 and from 2015-202
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!