Which of the following statements is the most common explanation as to why a company might have a negative amount of total stockholders' equity on its balance sheet?
A. Its cash is segregated in a separate bank account designated for emergency uses.
B. Its total revenues are less than its total expenses in the current period.
C. Its total assets exceed its total liabilities.
D. It has a negative balance in its Retained Earnings account.
Answer: D
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A penetration pricing policy
A. involves temporary price cuts to speed new products into market. B. is the same as a "meeting competition" price-level policy. C. may be wise if a firm expects strong competition very soon after its product introduction. D. is wise when demand is fairly inelastic-offering an "elite" market. E. involves a series of step-by-step price reductions along an inelastic demand curve.
Colleen is admitted to the partnership of Elmore & Monticello and makes an initial capital contribution of $10,000. Two years later, when liabilities of the partnership exceed its assets by $20,000, the firm is dissolved. Paul had loaned the firm $5,000 six months before Colleen was admitted; Scott had loaned the firm $8,000 three months after Colleen was admitted. Colleen has:
A) no liability to Scott. B) liability to Paul and Scott only to the extent of her capital contribution. C) no liability to Paul. D) liability to Paul to the extent of her capital contribution and is personally liable to Scott.
What is the significance of flextime as a motivator for employees?
A. It gives employees extensive training to do their work right the first time. B. It allows employees to share a full-time job with other employees. C. It gives employees greater control over their time and activities. D. It allows employees to divide a full-time job into distinct parts.
What layer number is the transport layer?
A) 1 B) 2 C) 3 D) 4