A Manager Can Improve EVA by

question 115

Multiple Choice

A manager can improve EVA by

• A) increasing assets and decreasing costs.
• B) increasing sales and assets.
• C) increasing cost of capital and assets.
• D) decreasing assets and lowering cost of capital.

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Definitions:

Prepaid Expense

An expense paid in advance of its due date, recorded as an asset on the balance sheet until the benefits are realized or the service period expires.

Magazine Subscription

A magazine subscription is an agreement to receive or gain access to periodic issues of a magazine over a specified period, usually in return for a payment.

Paid

Refers to the status of an obligation or invoice that has been settled or fulfilled through payment.

Vertical Analysis

An approach to financial statement examination whereby each component is presented relative to a foundational number in the report.