QUESTION 16

1. A higher fixed-asset turnover ratio indicates management is more effective in managing its company's property, plant, and equipment.

   True

   False

3 points

QUESTION 17

1. Under the equity method of accounting for a stock investment, cash dividends received are considered a reduction of the investee's net assets.

   True

   False

3 points

QUESTION 18

1. The relative fair values of individual assets acquired in a lump-sum purchase are used to determine the valuation of each of those assets.

   True

   False

3 points

QUESTION 19

1. In the statement of cash flows, inflows and outflows of cash from buying and selling trading securities typically are considered:

   	a.	Operating activities.
   	b.	Investing activities.
   	c.	Financing activities.
   	d.	Noncash financing activities.

3 points

QUESTION 20

1. Which of the following typically refers to the process of allocating the cost of long-term intangible assets used in the business over future periods?

   	a.	Depreciation.
   	b.	Amortization.
   	c.	Depletion.
   	d.	Impairment.