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Indicate whether each of the following statements about equity is true or false.
_______ a)Operating expenses reported on the income statement decrease retained earnings.
_______ b)Owners' equity and liabilities can be viewed either as sources of assets or claims to assets of the business.
_______ c)Retained earnings is increased by loans received from a bank.
_______ d)Dividends paid to stockholders decrease common stock.
_______ e)Owners' equity is the residual interest in the company resulting from the difference between assets and liabilities.
Net Working Capital
A financial metric representing the difference between a company's current assets and its current liabilities.
Present Value
The today's equivalent value of a future financial sum or cash flows, discounted at a predetermined rate of return.
CCA Tax Shield
The reduction in taxable income for Canadian businesses, derived from depreciating assets over time under Canada's Capital Cost Allowance regime.
Required Rate of Return
The lowest yearly percentage gain that convinces individuals or corporations to invest in a specific security or initiative.
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