Benny-Duke Inc. reported a net income of $7 million but paid no dividends to its shareholders. The shareholders should sue the company for failure to provide a return on their equity investment.
Answer the following statement true (T) or false (F)
False
Shareholders of Benny-Duke Inc. may prefer the company to reinvest its earnings. Many stockholders actually prefer their companies to reinvest earnings—at least if management invests them wisely—because doing so can help finance their firm's growth. See 9-3: Finding Funds: What Are the Options?
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Normally, BC bottling company attaches plastic labels to its bottles. However, a new regulation requires that the company now use fabric labels. To use this latest innovation, BC bottling company must now source these fabric labels from another company. This is an example of
A. need recognition. B. a straight rebuy situation. C. a modified rebuy situation. D. vendor analysis. E. an RFP.
All of the following illustrate lessons learned regarding the 2008-2009 financial crisis except
A) housing conditions have a strong impact on the economy. B) economic conditions affect the demand for homes. C) sellers were able to attract potential buyers by slightly reducing sale prices. D) allowing unqualified mortgage applicants to qualify for mortgages hurt the housing market.
The manufacturing overhead variance that is a measure of capacity utilization is:
A. the overhead efficiency variance. B. the overhead budget variance. C. the overhead volume variance. D. the overhead rate variance.
Blake Company established a petty cash fund in the amount of $400. At the end of the accounting period, the petty cash box contained receipts for expenditures amounting to $180 and $215 in cash. If the entries to record the disbursements and to replenish the fund are combined, what effect will the entries to replenish the fund have on total assets and expenses? Total Assets ExpensesA. -$180 +$185 B. -$185 +$185 C. -$185 +$180 D. -$180 +$180
A. Option A B. Option B C. Option C D. Option D