Which of the following is not true regarding shareholders' equity for a corporation?
a. Shareholders' equity is the residual interest of owners in the assets of an entity, after subtracting liabilities.
b. Shareholders' equity includes assets exchanged by owners in return for an ownership interest.
c. Shareholders' equity includes net assets generated by earnings activities in excess of net assets distributed to owners as dividends.
d. Shareholders' equity is increased by repurchases by the firm of its ownership interests.
e. all of the above.
D
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A consolidation of two corporations usually requires all of the following except
A. Approval by the board of directors of each corporation. B. Receipt of voting stock by all shareholders of the original corporations. C. Provision for an appraisal buyout of dissenting shareholders. D. An affirmative vote by the holders of a majority of each corporation's voting shares.
If a business's current assets are $500,000 and current liabilities $250,000, what is its current ratio?
A) 1:2 B) 2:1 C) 20% D) 2%