Which of the following activities would most likely affect a particular company's systematic risk?
A. The company's CEO resigns.
B. The firm's sales this year probably will substantially lower than the amount forecasted by senior management.
C. According to the U.S. government, inflation is expected to increase during the next five years.
D. There is a good chance that the firm will experience a long labor strike in the near future.
E. Next year the company plans to introduce a new product line that has a 30 percent chance of failing.
Answer: D
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On August 1, Covington Motors pays £18,000 for insurance coverage for the next 12 months. On August 1, the firm records the following journal entry:
a. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 Insurance Expense . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 18,000 b. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 c. Insurance Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 d. Liability for Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 e. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 18,000 Liability for Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 18,000
Which of the following assets are subject to an annual impairment evaluation?
a. Intangible assets b. Goodwill c. All long-term assets d. All short-term assets
Technical skills include ________.
A. experience gained by experiments that are used in performing managerial tasks B. job specific knowledge needed to proficiently perform work tasks C. the ability to work well with individuals and groups D. skills managers use to think and to conceptualize about abstract and complex situations
____________________ dating is when the discount period and the credit period start on the date of the invoice
Fill in the blank(s) with correct word