The percentage of the next dollar you earn that must be paid in taxes is referred to as the _____ tax rate.
  • marginal
Which one of the following is the financial statement that summarizes a firm’s revenue and expenses over a period of time?
  • income statement

The common set of standards and procedures by which audited financial statements are prepared is known as the:

  • Generally Accepted Accounting Principles.

Which one of the following is the financial statement that shows the accounting value of a firm’s equity as of a particular date?

  • balance sheet
Which one of the following statements is correct concerning the NYSE?
  • The listing requirements for the NYSE are more stringent than those of NASDAQ.

Shareholder A sold shares of Maplewood Cabinets stock to Shareholder B. The stock is listed on the NYSE. This trade occurred in which one of the following?

  • secondary, auction market
Which one of the following statements concerning stock exchanges is correct?
  • Some large companies are listed on NASDAQ.
Public offering of debt and equity must be registered with which one of the following?
  • Securities and Exchange Commission
Shareholder A sold 500 shares of ABC stock on the New York Stock Exchange. This transaction:
  • was facilitated in the secondary market.
Which one of the following is least likely to be an agency problem?
  • increasing the market value of the firm's shares
Which one of the following is an agency cost?
  • hiring outside accountants to audit the company's financial statements