1. The most popular methods of valuation used for mergers and acquisitions are earnings multiples and discounted cash flows. True False
2. Computing the value of an acquisition target as an independent firm provides a way of checking whether the valuation assumptions are reasonable. True False
3. Firms that are flush with cash but have few new profitable investment opportunities are prone to using their surplus cash to make acquisitions. True False
4. Internal governance agents, such as corporate boards, audit committees and internal auditors, are responsible for monitoring a firm's management. True False
5. Accounting reports merely provide a record of past transactions and do not reflect management estimates and forecasts of the future. True False
6. Uniform accounting standards attempt to reduce managers' ability to record similar economic transactions in different ways, either over time or across companies. True False