Which of the following conditions indicate a company has a relatively high level of financial risk?
A. A high current ratio
B. A low debt to assets ratio
C. A high return on equity
D. A low times-interest-earned ratio
Answer: D
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A company records the following journal entry: debit Cash $1,470, debit Sales Discounts $30, and credit Accounts Receivable $1,500. This means that a customer has taken what percentage cash discount for early payment?
A. 10% B. 5% C. 2% D. 15% E. 1%
Analyzing demographic information, customer needs, preferences, and behaviors with respect to product design, pricing, distribution, and promotion is which of the following parts of strategic planning?
A. Assessing organizational resources and opportunities B. Managing marketing implementation C. Establishing mission and goals D. Developing a written document known as the marketing plan E. Developing marketing objectives and marketing strategies
Percy Corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During the first month of operation, the corporation issued 400 shares to its attorneys in payment of a $5,000 charge for drawing up the articles of incorporation. The entry to record this transaction would include:
A. A credit to Common Stock for $5,000. B. A debit to Organization Expenses for $4,000. C. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $5,000. D. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000. E. A debit to Organization Expenses for $5,000.
What is the significance of a cross-functional team?