The following information relates to Gear Corporation: Inventory conversion period 68.2 days Receivables collection period 35.8 days Payables deferral period 24.6 days Which of the following is the cash conversion cycle of the company?
A. 128.6 days
B. 79.4 days
C. 57.0 days
D. 79.2 days
E. 60.4 days
Answer: B
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Which of the following statements is true of the employment at will doctrine?
A. It has been reinforced in the past 50 years by statutes such as Title VII, the National Labor Relations Act, and the Age Discrimination in Employment Act. B. It gives workers the right to organize and bargain collectively. C. It requires certain reports to the secretary of labor that should disclose a great deal about the financial situation of the union. D. It is based on the laissez-faire values of the 19th century, for it leaves both the employer and employee with maximum freedom.
The following series of transactions occurred during Year 1 and Year 2, when Foxworth Co. sold merchandise to Kevin Lewis. Foxworth's annual accounting period ends on December 31. 10/01/Yr 1Sold $12,000 of merchandise to K. Lewis, terms n/30.11/15/Yr 1Lewis reports that he cannot pay the account until early next year. He agrees to exchange the account for a 120-day, 12% note receivable.12/31/Yr 1Prepared the adjusting journal entry to record accrued interest on the note.03/15/Yr 2Foxworth receives a check from Lewis for the maturity value (with interest) of the note.03/22/Yr 2Foxworth receives notification that Lewis' check is being returned for nonsufficient funds (NSF).12/31/Yr 2Foxworth writes off Lewis' account as uncollectible.Prepare Foxworth Co.'s journal entries to record the
above transactions. The company uses the allowance method to account for its bad debt expense. What will be an ideal response?
In auditing an asset valued at fair value, which of the following potentially provides the auditor with the strongest evidence?
A. The historical cost of the asset. B. A price for a similar asset obtained from an active market. C. An appraisal obtained discounting future cash flows. D. Management's judgment of the cost to purchase an equivalent asset.
Agencies such as the Environmental Protection Agency, the Equal Employment Opportunity Commission, the Federal Trade Commission, and the Food and Drug Administration are designed to keep big business in line. What type of agency are they?
What will be an ideal response?