Answer:
C. NPV is the discounted present value of a project's expected future accounting net income at the required return, subtracting the initial investment.
Explanation:
NPV means Net Present Value, this is calculated by computing the present value of cash returns and not the accounting income, as accounting income takes in account non cash items also, although while computing returns the non cash transactions are not considered.
Therefore the chosen statement which states about accounting income less initial investment is false as even in case the project requires additional mid term investment then that is also considered.
Thus, false statement is
Statement C
Shareholders' equity is equal to net fixed assets minus long-term debt plus net working capital.
Shareholders' equity refers to the amount owners of a company have invested in the said company:
- Shareholders' equity includes the money they've directly invested and the accumulation of income that has been accrued in the name of the company as earned since the start of the investment and reinvestment.
- It refers to the ownership of assets that may have liabilities or debts connected to them.
- Shareholder's equity is equal to the net fixed assets of the company subtracted from the long-term debt and added to the net working capital.
- Another way to ascertain shareholders' equity is by subtracting total assets from total liabilities.
Therefore, shareholders' equity is equal to net fixed assets minus long-term debt plus net working capital.
Learn more about shareholders' equity here: brainly.com/question/14032844
#SPJ4
A. Frontline staff is your answer because they are the staff that work directly with customers.
Answer:
Retained Earnings increased $28,650 in 2016.
Explanation:
The total increase in Retained Earnings account = Net income = $80,000;
The total decrease in Retained Earnings account = Dividend paid to common shares + Dividend paid to preferred shares = Dividend per common share x Number of common share outstanding + % dividend on preferred stock x par value of preferred stock x number of preferred stock outstanding = 0.75 x 65,000 + 2% x (130,000 / 13,000) x 13,000 = $51,350;
So, Net effect on Retained Earnings Account = $80,000 - $51,350 = $28,650 ( increase).