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Cash dividends are not a liability of the corporation until they are declared by the board of directors. Once cost is established for a plant asset, it becomes the basis of accounting for the asset unless the asset appreciates in value, in which case, market value becomes the basis for accountability. 75,000. What is the depreciation expense for year 2 under straight-line depreciation? Which of the following is not properly classified as property, plant, and equipment? A comparison with other companies that provides insight into a company’s competitive position is most commonly known as which of the following types of comparisons? All of the following statements regarding changes in accounting principles are true except which of the following? Bogey Co. recorded operating data for its Cheap division for the year. What is the ROI for the year? 5,200,000. The company requires a return on investment of at least 8%. How much is residual income? Laser Performance Inc. has the following information available (amount in thousands). What is the current cash debt coverage? The following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures. What is Marsh’s payout ratio? Which one of the following is not a benefit of budgeting? 125,000 of par value common stock for cash. What is the net cash provided by operating activities? Which of the following is not typically a characteristic experienced by a company during the growth phase of the corporate life cycle? Using vertical analysis, what percentage is assigned to net income? Which one of the following items is not necessary in preparing a statement of cash flows? 10 par preferred stock for par.