A firm can accept a project with a net present value of zero because ________
A) the project would maintain the wealth of the firm's owners
B) the project would enhance the wealth of the firm's owners
C) the project would maintain the earnings of the firm
D) the project would enhance the earnings of the firm
A
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____ is a residual that represents the amount that stockholders would receive if all of the firm's assets could be sold at their book values and all of their liabilities could be paid at their book values
a. Net worth b. Retained earnings c. Paid-in-capital d. Total assets
At the end of 2017 . Mirror Productions determined that one of its copyrights was worthless. The copyright had a cost of $320,000 . The copyright had been amortized for eight years of its estimated 25-year legal life. Which of the following statements is the justification for removing the remaining cost of the copyright from the accounting records?
a. The copyright no longer represents a future benefit to the company. b. The federal government does not allow copyrights to be recorded as assets once they are deemed worthless. c. The cost of the copyright represents an obligation to return capital contributions to the stockholders. d. The cost of the copyright has usefulness that will impact the net income of future accounting periods.