If a firm does not meet its forecasted sales level, leverage will result in a magnified loss in income compared to what is expected.
Answer the following statement true (T) or false (F)
True
If the forecasted sales level is not met, then the production facilities might be expanded too greatly, inventories might be built up too quickly, and so on, and the end result might be that the firm suffers a significant income loss. See 16-4: Using Leverage and Forecasting for Control
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Credit terms of n/30 mean that the net amount of the invoice, less any returns or allowances, is due within 30 days of the date of the invoice
a. True b. False Indicate whether the statement is true or false
Statutes or ordinances designed to prevent abuse of security deposits by landlords:
A. allow landlords to withhold security deposits when the property is damaged by ordinary wear and tear. B. require that the security deposits be refundable. C. prohibit landlords from taking advance payments of rents from tenants. D. prevent withholding security deposits for nonpayment of rent.
Answer the following statements true (T) or false (F)
1. Deep acting causes burnout in employees. 2. Some employees seek hospitality jobs partly for the opportunity to demonstrate their creativity and originality, which is fun for them. 3. Older employees often bring an enthusiasm for helping and interacting with guests to hospitality organizations. 4. Most hospitality organizations prefer to recruit from inside.
Which of the following is a true statement regarding owners’ equity?
a. APB Statement 4 and SFAC No. 6 both reflect the entity view of the firm. b. Owners’ equity consists of only two components: contributed capital and retained earnings. c. In a sole proprietorship, there is no legal distinction between contributed capital and earned capital. d. Dividends are legally paid only out of retained earnings.