Which of the following profitability ratios is most useful in indicating the "quality" of a company's earnings?
a. Price/earnings ratio
b. Gross profit ratio
c. Dividend payout ratio
d. Dividend yield ratio
a
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Paying taxes to the government is an example of an operating activity
Indicate whether the statement is true or false
Which of the following best explains why companies are adopting the team selling approach to service large, complex accounts?
A) Products have become too complicated for one salesperson to handle a large company's needs. B) Customers prefer dealing with many salespeople rather than one sales representative. C) Job rotation, an integral part of team selling, keeps workers motivated and boosts their morale. D) Team selling facilitates the evaluation of individual contributions. E) With team selling, companies are not required to train the outside sales force any longer.
Tahoe Ski Company uses the perpetual inventory system and the gross method of accounting for purchases. The company had the following transactions during January: January 6:Purchased $4,000 of inventory. The seller's credit terms are 2/10, n/30.January 8:Returned $200 worth of defective units and received full credit. January 15:Paid the amount due, less the returned items.Prepare journal entries to record each of the preceding transactions.
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