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NEW QUESTION: 1
A company that has operating leases versus capital leases will have a
A. higher debt/equity ratio and a lower return on capital ratio.
B. higher debt/equity ratio and a higher return on capital ratio.
C. lower debt/equity ratio and a higher return on capital ratio.
Answer: C
Explanation:
Since operating leases keep the asset and related debt off the balance sheet, debt will be lower, resulting in a lower debt/equity ratio, and assets will be lower, resulting in a higher return on capital ratio, as well as higher income in the earlier years of an operating lease.

NEW QUESTION: 2
One way or the other, the financial benefits of ownership of an interest in a business enterprise must come from the following sources EXCEPT:
A. Liquidation or hypothecation of assets
B. Dividends, distributions, or other type of cash flow
a) From operations, or
b) From investments (e.g. interest)
C. Sale of interest
D. Loan/Debt
Answer: D

NEW QUESTION: 3
Your client wants to flow-through allocations. Which two types of packing transactionsachievethis flow?
A. Padclpn
B. Distribution
C. PackNC
D. Pick Cart
Answer: B,C