Proposed Assets Can Be Evaluated Using the Company Cost of Capital

question 100

Multiple Choice

Proposed assets can be evaluated using the company cost of capital providing that the:

• A)Firm does not pay taxes
• B)Firm is all equity financed
• C)Cost of debt is less than the cost of equity
• D)New assets have the same risk as existing assets

Grasp the process of taking discounts on purchases and their effect on financial accounts.

Differentiate between F.O.B. shipping point and F.O.B. destination.

Calculate and record the effect of freight charges on merchandise purchases.

Explain the role and importance of subsidiary ledgers and control accounts in accounting.