An economic recession increases demand for products and services
Indicate whether the statement is true or false
a. True
b. False
ANSWER: False
A period of economic activity characterized by negative growth, which reduces demand for goods and services, is known as a recession.
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Businesses might set up special journal columns for different accounts depending on the frequency of their use
a. True b. False Indicate whether the statement is true or false
The adjusting entry to record the depreciation of equipment for the fiscal period is
A) debit Depreciation Expense; credit Equipment B) debit Depreciation Expense; credit Accumulated Depreciation C) debit Accumulated Depreciation; credit Depreciation Expense D) debit Equipment; credit Depreciation Expense
Sullivan said to his manager, "Theo, I need to tell you that I have received an unsolicited offer from a competitor. I've enjoyed my eight years at Smith Enterprises, and I'd like to stay. But the offered salary is 20 percent higher than my current salary. The other firm cited what I have learned this past year on the public works job as a particularly valuable skill." Sullivan is a highly valued employee, and Theo has been grooming him as his successor. If Theo were to consider market rates as an important indicator of worth in responding to Sullivan, Theo would most likely
A. transfer Sullivan to a division in another city where the competitor does not have an office. B. terminate Sullivan's employment for insubordination and lack of loyalty. C. explain to Sullivan that internal resource considerations establish Sullivan's salary. D. contact the competitor and inform them that Sullivan is "off limits." E. seek to retain Sullivan by increasing his salary by 25 percent.
A disadvantage of bond financing is:
A. It allows firms to trade on the equity. B. Bonds do not affect owners' control. C. Bonds can increase return on equity. D. Bonds pay periodic interest and the repayment of par value at maturity. E. Interest on bonds is tax deductible.