51.Effectiveness increases when
a.a company earns higher amounts of profits
b.a company is able to earn higher amounts of profits for each additional dollar of product it sells
c.the dollar amount of sales increases more rapidly than the dollar amount of additional investment
d.the dollar amount of sales increases
52.In the United States, usually plant assets are reported at
a.lower-of-book value-or-market value
b.market value
c.higher-of-cost-or-market
d.replacement cost
53.Seneca Co. purchased a cargo ship in 1990. Following generally accepted accounting principles, the book value of the ship in 2007 would most likely be
a.greater than the amount reported on the balance sheet
b.greater than or equal to the amount reported on the balance sheet
c.less than the amount reported on the balance sheet
d.less than or equal to the 2007 market value of the ship
54.Plant assets are reported at lower of historical cost or market primarily to
a.protect the interests of external decision makers
b.protect the interests of internal decision makers
c.simplify record keeping
d.ensure that the reported amount is always the same as the market value
55.Comparing different companies can be difficult because of the use of
a.historical costs
b.different depreciation methods that may be used
c.historical cost and different depreciation methods
d.neither historical cost nor different depreciation methods
56.In general, one would assume that
Investing activities Financing activities
would generate cash would consume cash
a.Yes Yes
b.Yes No
c.No Yes
d.No No
57.Efficiency increases when
a.a company earns higher amounts of profits
b.a company is able to earn higher amounts of profits for each additional dollar of product it sells
c.the dollar amount of sales increases more rapidly than the dollar amount of additional investment
d.the dollar amount of sales increases