Herndon Corp purchased merchandise on account from Likert Corp on November 18, 2014 . On November 21, 2014, Herndon returned damaged merchandise to Likert and was granted an adjustment on its account. Herndon uses the periodic inventory system. What effect does the merchandise return have on Herndon's accounting equation?
a. Assets and stockholders' equity decrease.
b. Assets and liabilities decrease.
c. Liabilities decrease and stockholders' equity increases.
d. Liabilities and stockholders' equity decrease.
c
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Which of the following statements is CORRECT, assuming positive interest rates and holding other things constant?
A. Banks A and B offer the same nominal annual rate of interest, but A pays interest quarterly and B pays semiannually. Deposits in Bank B will provide the higher future value if you leave your funds on deposit. B. The present value of a 5-year, $250 annuity due will be lower than the PV of a similar ordinary annuity. C. A 30-year, $150,000 amortized mortgage will have larger monthly payments than an otherwise similar 20-year mortgage. D. A bank loan's nominal interest rate will always be equal to or greater than its effective annual rate. E. If an investment pays 10% interest, compounded quarterly, its effective annual rate will be greater than 10%.
Which statement is not a recommendation to follow when giving an oral presentation?
A) Avoid words that you have difficulty pronouncing. B) Use frequent preview, summary, transition, and repetition. C) Use as much jargon as possible. D) Use notes sparingly. E) Use a conversational style, but speak more slowly than normal.
Break-even analysis is an accurate measure of price sensitivity.
Answer the following statement true (T) or false (F)
A security interest that provides for a security interest in after-acquired property is a floating lien.
Answer the following statement true (T) or false (F)