Answer the following statement(s) true (T) or false (F)

1. Checks are a form of demand deposit and represent the vast majority of the financial transactions conducted in the United States.
2. M2 includes time deposits, money market accounts, currency, and demand deposits.
3. Although credit cards are not officially considered to be money they operate as a medium of exchange.
4. The use of credit cards peaked during the 1990s but is dropping at this time.
5. The National Banking Act of 1863 created a banking system of state-chartered banks.


1. FALSE
2. TRUE
3. TRUE
4. FALSE
5. FALSE

Business

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A company using the percentage of sales method for estimating bad debts has sales of $350,000 and estimates that 1.0% of its sales are uncollectible. The unadjusted balance in Allowance for Doubtful Accounts is a $300 credit. The estimated amount of bad debts expense is $3,200

Answer the following statement true (T) or false (F)

Business

The use of p=50%, q=50% is a research industry standard at least in part because:

A) it is the most conservative p-q combination B) it generates the largest sample size C) it is preferred to guessing about variability D) there may be little prior knowledge about the population to be studied E) all of the above are true

Business

Northbrook Corporation is preparing a statement of cash flows. The following transactions occurred during the year: 1. Sold machinery for $9,000 cash. 2. Purchased a building for $80,000 cash. 3. Issued $70,000 worth of stock to acquire an airplane. 4. Converted long-term bonds by issuing $100,000 worth of stock. 5. Declared and paid a $10,000 cash dividend. Transaction 3 would be found on the

statement of cash flows in the A) cash flows from operating activities section. B) cash flows from financing activities section. C) noncash investing and financing transactions section. D) cash flows from investing activities section.

Business

Although Alexis likes her job at Chili's, she liked working at Applebee's ________

A) better B) best C) more better D) bestest

Business