If an investment in a new asset results in a change in current assets that exceeds the change in current liabilities, this change in net working capital represents an initial cash outflow
Indicate whether the statement is true or false
TRUE
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Cushion Sports accepted a credit card account receivable in exchange for $5,000 of services provided to a customer. The credit card company charges a 5% service charge. Recording the transaction in the company's accounting records will have what effect on the accounting equation?
a. Increase assets and equity by $4,750 b. Decrease assets and equity by $250 c. Increase assets by $5,000 d. Increase equity by $5,000
Expenses are often called the cost of doing business or expired costs
Indicate whether the statement is true or false
A sewing machine has a mean time between failures of 296 hr and mean time to repair of 11 hr. In this case, the availability is ______.
A. 96.4% B. 92.1% C. 89.3% D. 78.9%
A budget is best described as:
A. An informal statement of company's future plans usually expressed in monetary terms. B. A master control device. C. The minimum acceptable performance level. D. A formal statement of a company's future plans usually expressed in monetary terms. E. The most crucial component of a company's evaluation process.