If the firm was to shift $3,000 of current assets to fixed assets, the firm's net working capital would ________, and the risk of insolvency would ________, respectively. (See Table 14.2)
A) increase; increase
B) decrease; decrease
C) increase; decrease
D) decrease; increase
D
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According to BoardSource, exceptional boards ensure congruence between its ______.
A. decisions and core values B. direction and its financial goals C. volunteers and members of the board D. governance duties and organizational priorities
According to the most current FASB standards, intangible assets acquired in a basket purchase which represents the acquisition of an entire business should be
a. valued by recording separately traded and contract based intangible assets at their individual fair values with any unallocated purchase price being recognized as goodwill. b. valued by allocating the total purchase price according to the relative fair values only of intangible assets that are separately tradable or contract based. c. valued by allocating the total purchase price according to the relative fair values of all assets acquired, regardless of whether the assets are separately tradable or contract based. d. valued by recording separately traded and contract based intangible assets at their individual fair values with any unallocated purchase price being expensed in the year of acquisition.
If a company receives $12,000 from a stockholder, the effect on the accounting equation would be:
A. Assets increase $12,000 and liabilities increase $12,000. B. Assets decrease $12,000 and equity decreases $12,000. C. Assets increase $12,000 and equity increases $12,000. D. Assets increase $12,000 and liabilities decrease $12,000. E. Liabilities increase $12,000 and equity decreases $12,000.
Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to a 11.2% rate of return on invested assets of $350,000. Fixed factory overhead cost $105,000 Fixed selling and administrative costs 35,000 Variable direct materials cost per unit 4.34 Variable direct
labor cost per unit 5.18 Variable factory overhead cost per unit .98 Variable selling and administrative cost per unit .70 The variable cost per unit for the production and sale of the company's product is: A) $14.00 B) $12.60 C) $ 9.80 D) $11.20