In a break-even problem, which costs are considered?
a. Fixed costs
b. Variable costs
c. Both fixed and variable costs
d. Neither fixed nor variable costs
c. Both fixed and variable costs
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Which of the following is a not a decision that management must make before calculating ROI and RI?
A) Should nonproductive assets be included in the average total asset calculation? B) Should gross book value or net book value of assets be used? C) Should a simple average of the beginning and ending total liabilities be used? D) Should a short term focus be used?
Discuss the techniques employed by writers to link ideas together.
What will be an ideal response?
Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $126,500, allowance for doubtful accounts of $885 (credit) and sales of $1,035,000. If uncollectible accounts are estimated to be 5.00% of accounts receivable, what is the amount of the bad debts expense adjusting entry?
A. $5775 B. $7210 C. $5625 D. $5440 E. $6325
Assume that the current corporate bond yield curve is upward sloping, or normal. Under this condition, we could be sure that
A. Long-term interest rates are more volatile than short-term rates. B. Inflation is expected to decline in the future. C. The economy is not in a recession. D. Long-term bonds are a better buy than short-term bonds. E. Maturity risk premiums could help to explain the yield curve's upward slope.