Accounting profits are used to make capital budgeting decisions because generally accepted
accounting principles ensure that profits are the best measure of a company's economic activity.
Indicate whether the statement is true or false
FALSE
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Ray Patel, a local DJ, bought sound equipment from Backstage Equipment Inc and paid by three post-dated cheques of $10,000 each. Backstage took out a loan for $30,000 and endorsed the cheques to its bank as security for the loan
The equipment totally failed and Patel wants to stop payment against the bank. Will he be successful? A) Yes, because the equipment did not work. B) Yes, if he put a stop payment before the due dates on the cheques C) No, because the bank is a holder in due course. D) No, because the bank actually lent $30,000 to Backstage. E) No, because the bank has a loan agreement with Backstage.
An income stock is one you expect to show a high level of net income
Indicate whether the statement is true or false