Sellers allow customers to use credit cards for all of the following reasons except:
A. To increase total sales volume.
B. To speed up receipt of cash from the credit sale.
C. To be able to charge more due to fees and interest.
D. To lessen the risk of extending credit to customers who cannot pay.
E. To avoid having to evaluate a customer's credit standing for each sale.
Answer: C
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On September 12, Ryan Company sold merchandise in the amount of $5,800 to Johnson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Johnson uses the periodic inventory system and the net method of accounting for purchases. The journal entry that Johnson will make on September 12 is:
A.
| Accounts payable | 4,000 | |
| Merchandise inventory | 4,000 |
B.
| Merchandise inventory | 5,800 | |
| Accounts payable | 5,800 |
C.
| Purchases | 5,800 | |
| Accounts payable | 5,800 |
D.
| Merchandise inventory | 5,684 | |
| Accounts payable | 5,684 |
E.
| Purchases | 5,684 | |
| Accounts payable | 5,684 |
Business risk can be measured through sensitivity analysis but from only the project viewpoint
Indicate whether the statement is true or false.
Employers may legally make employment decisions that result in disparate treatment so as to protect women employees
a. True b. False Indicate whether the statement is true or false
A homeowner has a $227,000 home with a 20-year mortgage, paid monthly at 6.60% APR. After five years he receives $50,000 as an inheritance
If he pays this $50,000 toward his mortgage along with his regular payment, by approximately how many years will it reduce the amount of time it takes him to pay off his mortgage? A) 5.5 years B) 8.6 years C) 10.2 years D) 12.8 years