1) How would you decide, based on the net present value of the project, whether a
capital investment project is an acceptable investment or not?
2) Discuss a few common reasons for decreases in the market price of a corporation’s
common stock.
3) Based on the information given for a variance, indicate whether the variance is
favorable or unfavorable.
4) What is the meaning of “par value” of stock?
5) Indicate how each event affects the elements of financial statements. Use the
following letters to record your answer in the box shown below each element. You do
not need to enter amounts.
In performing the bank reconciliation for Bounds Company, a company employee
found that the bank statement included a bank service charge of $12.