The Cold War

question 65

Multiple Choice

The Cold War

• A)hampered globalization because it created a political barrier between countries which reduced the likelihood that those countries would engage in trade with one another.
• B)enhanced globalization because it helped to encourage countries to engage in trade with one another.
• C)ended with the building of the Berlin Wall in the early 1960s.
• D)a and c

Understand the components and computation of return on equity and return on total assets.

Grasp the concept of financial leverage, including its effect on company's equity and debt structure.

Recognize the impact of share transactions and asset sales on a company's financial ratios.

Understand liquidity and solvency ratios, particularly the current ratio and acid-test (quick) ratio.

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Definitions:

Double-Declining-Balance

A method of accelerated depreciation which doubles the normal depreciation rate, reducing the value of an asset more quickly in its early years.

Salvage Value

The predicted residual value of an asset upon reaching the end of its practical lifespan.

Depreciation Expense

The allocated amount of the cost of a tangible or physical asset over its useful life.

Useful Life

The estimated period over which it is expected that an asset will be profitable or useful to its owner.