EMathews, Inc generated $200,000 in sales revenues and incurred fixed costs of $30,000 . If the break-even sales is $ 140,000, what is the margin of safety ratio for Clarifex Company?
a. 75%
b. 30%
c. 40%
d. 60%
b
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Loss aversion refers to:
A) a stronger reaction to negative experiences. B) customers' willingness to accept minor losses. C) distortion of message when communicating with customers. D) customers willingness to appreciate good service.
A corporation issued 110 shares of its $5 par value common stock in payment of a $1900 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include:
A. A $1900 credit to Cash. B. A $1900 debit to Legal Expenses. C. A $550 debit to Organization Expenses. D. A $1900 credit to Common Stock. E. A $1350 credit to Paid-in Capital in Excess of Par Value, Common Stock.
Which of the following is not a component of the operating budget?
A. Selling and administrative budget B. Sales budget C. Direct materials purchases budget D. Budgeted balance sheet
A secured creditor's claim has priority to the debtor's property over the claim of an unsecured
creditor. Indicate whether the statement is true or false