In the Matter of Kmart Corp, where some creditors objected to the bankruptcy judge decision that "critical vendors" were to be paid first so that the store might stay in business, the appeals court held that:
a. the record showed the prospect or benefit to the other creditors, which is necessary to allow the preferential payment of one class of creditors and so the critical-vendors order could stand
b. the record did not show the prospect or benefit to the other creditors, which would be necessary to allow the preferential payment of one class of creditors and so the critical-vendors order could not stand
c. the record did not show the prospect or benefit to the other creditors, which would be necessary to allow the preferential payment of one class of creditors but the critical-vendors order could stand anyway
d. the record showed the prospect or benefit to the other creditors, which is necessary to allow the preferential payment of one class of creditors, but the critical-vendors order could not stand due to the special circumstances of the case
e. the creditors who objected were unreliable and so should not be paid
b
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How are purchase returns and purchase discounts recorded by a company using the periodic inventory system?
A) As a reduction to the Purchases account. B) In contra-accounts to the Purchases account. C) As operating expenses. D) As miscellaneous expenses.
The quick ratio
A) is used to quickly determine a company's leverage and long-term debt-paying ability. B) relates cash, marketable securities, and net receivables to current liabilities. C) is calculated by taking one item from the income statement and one item from the balance sheet. D) is the same as the current ratio except it is rounded to the nearest whole percent.
Which of the following assumptions is FALSE regarding the application of the trial-and-error approach to developing a sales and operations plan?
a. Unit costs are independent of the quantity produced. b. Cost is a nonlinear function of unit cost and the number of units. c. When allowed, backlogs are assumed to exist for the entire period. d. Production occurs at a uniform rate throughout each period.
In the ____ stage of team development, team members now begin to test the limits and flexibility of the project manager and the ground rules
a. forming b. norming c. storming d. performing