In the 5 C's of credit analysis, ________ is the ability of the borrower to pay
A) Capacity
B) Capital
C) Character
D) Collateral
E) Collections
A
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Which of the following is not a reason why the auditor needs to take special care to review significant estimates in the financial statements?
a. Organizations may try to use the estimates to "smooth" earnings. b. Organizations may create hidden reserves in unusually good years that can be used in years when real profits do not meet expectations. c. Companies may underestimate liabilities or impairment of asset values to achieve reported earning goals in years when real profits to not meet expectations. d. Companies may try to overestimate liabilities in computing leverage ratios.
It costs a company $6 to manufacture a product. It sells the product for $10 to a wholesaler who in turn sells it to a retailer for $12. A customer of the retailer buys it for $24. What was the markup on selling price for each member of this product's channel of distribution?
A. Manufacturer's markup = 66.67 percent; wholesaler's markup = 20 percent; retailer's markup = 100 percent B. Manufacturer's markup = 60 percent; wholesaler's markup = 20 percent; retailer's markup = 100 percent C. Manufacturer's markup = 60 percent; wholesaler's markup = 23 percent; retailer's markup = 40 percent D. Manufacturer's markup = 40 percent; wholesaler's markup = 16.67 percent; retailer's markup = 50 percent E. Manufacturer's markup = 48 percent; wholesaler's markup = 18 percent; retailer's markup = 45 percent
By converting dollars to be received in the future into current dollars, the present value methods take into consideration that money:
A) has an international rate of exchange B) is the language of business C) is the measure of assets, liabilities, and stockholders' equity on financial statements D) has a time value
A(n) _____ is the channel used to convey a message to a target market
a. medium b. product network c. attribute d. appeal