Two aspects of psychological pricing are the price–quality association and prestige pricing

Indicate whether the statement is true or false


True

Business

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A company's income before interest expense and income taxes is $375,000 and its interest expense is $105,000. Its times interest earned ratio is:

A. 0.28 B. 2.29 C. 3.29 D. 1.00 E. 3.57

Business

A truck that cost $12,000 and on which $9,000 of accumulated depreciation has been recorded was disposed of on January 1 . Assume that the truck was disposed of for $2,000 cash. The entry to record this event is:

a. Accumulated Depreciation— Truck 3,000 Truck 3,000 b. Accumulated Depreciation— Truck 11,000 Truck 10,000 Gain on Sale of Truck 1,000 c. Cash 2,000 Accumulated Depreciation— Truck 9,000 Loss on Sale of Truck 1,000 Truck 12,000 d. Truck 9,000 Accumulated Depreciation— Truck 9,000

Business

The Victor Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2009, at 96. The journal entry to record the issuance will show a

A) debit to Cash of $1,000,000. B) credit to Discount on Bonds Payable for $40,000. C) credit to Bonds Payable for $960,000. D) debit to Cash for $960,000.

Business

The ________ is the customer's prioritized list of key features desired when the project is completed.

A. Product backlog B. Project list C. Spirit backlog D. Creative backlog E. Project master

Business