If a company offers a cash discount for early payment, this will most likely increase its cash
conversion cycle since it will have to pay out more cash to its customers.
Indicate whether the statement is true or false
FALSE
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Describe FAQs and other knowledge bases. How can these provide helpful customer service?
What will be an ideal response?
If a company constructs an asset over a period of time and borrows money, the amount of interest incurred during construction on the borrowed money is
a. capitalized as part of the cost of the plant asset. b. amortized over the construction period. c. reported as interest expense on the income statement. d. reported as depletion on the income statement.
Breanne was walking across campus to her chemistry lab when she noticed an area that had posters displayed and for sale that was not there earlier in the week. This retail format would be an example of a
A. kiosk. B. store within a store. C. parasite store. D. pop-up shop. E. timed leased agreement.
Tower Company owns 85% of Hill Company. The two companies engaged in several intra-entity transactions. There were no excess fair-value amortization amounts to account for. Each company's income before income tax and dividend income for the current time period follow, as well as the effects of intra-entity gross profits on remaining inventory which are included in the separate net income amounts. No income tax accruals have been recognized within these totals. The tax rate for each company is 30%. Tower CompanyHill CompanySeparate income before income tax (excluding equity or dividend income from Hill)$200,000$80,000Intra-entity gross profit on remaining inventory (included in income above)25,00010,000Dividend income from Hill10,200 Dividends declared15,00012,000?Using the percentage
allocation method for assigning income tax expense, the income tax expense assigned to Hill is closest to: A. $0. B. $21,000. C. $17,400. D. $24,000. E. $20,400.