A firm has a cash conversion cycle of 80 days, an average collection period of 25 days, and an average age of inventory of 70 days. Its operating cycle is ________ days
A) 95
B) 105
C) 60
D) 130
A) 95
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Which of the following statements correctly reflects the relationships among quantity, cost, and price, based on the cost-oriented pricing model?
A. The average total cost is usually obtained by adding the profit per unit to the quantity demanded at selling price. B. Cost-oriented selling price per unit is usually determined by adding the variable cost per unit with the estimated quantity to be sold. C. The quantity demanded at selling price is the quantity used to compute the average cost. D. The estimated total number of units to be sold usually determines the average fixed cost per unit.
Which of the following statements is CORRECT?
a. The modified internal rate of return method (MIRR) is generally regarded by academics as being the best single method for evaluating capital budgeting projects. b. The internal rate of return method (IRR) is generally regarded by academics as being the best single method for evaluating capital budgeting projects. c. The discounted payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects. d. The payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects. e. The net present value method (NPV) is generally regarded by academics as being the best single method for evaluating capital budgeting projects.
In order to shift the taxation of dividend income from a parent to a child
A. the parent must transfer ownership of the stock to the child. B. the parent must direct the corporation to pay the dividend to the child. C. the parent can deposit the dividend in the child's bank account. D. all of the above will result in shifting the taxation to the child.
One of your friends is preparing to open a store that will sell outdoor gear. When you heard that the business would have three or four employees, you told your friend that she would need to pay careful attention to segregation of duties. She has asked you to explain what duties should be separated and why segregation of duties is important in a business. Write a note to your friend explaining these issues.
What will be an ideal response?