Sparrow Company Had Net Income of $63,000

question 7

True/False

Sparrow Company had net income of $63,000.The company had 9,000 weighted average common shares outstanding.The basic earnings per share equal $7.00 per share.

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Definitions:

American Rule

A legal principle stating that each party in a lawsuit is responsible for paying its own attorney fees, except as otherwise provided by statute or contract.

English Rule

A legal principle where the losing party in litigation is required to pay the legal costs of the winning party.

Obligor

A party that is bound by a legal obligation to another, known as the obligee.

Consent

Consent is the voluntary agreement to or approval of a proposal or action, typically after having knowledge of relevant facts and implications.