What is a convertible debt instrument?
a. A loan to a small business made by a bank that gets converted to a lower interest rate
once the startup gets larger.
b. A mechanism for early-stage investment where the investor is issued a note with an
interest rate for the invested amount, convertible to stock at certain price per share
upon Series A investment or other events as specified in the note.
c. A debt instrument that converts to publically traded stock after one year.
d. None of the above
b. A mechanism for early-stage investment where the investor is issued a note with an
interest rate for the invested amount, convertible to stock at certain price per share
upon Series A investment or other events as specified in the note.
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Which of these always cause a decrease in owner's equity?
a. an increase in expenses and an increase in revenue; b. a decrease in expenses and a decrease in revenue; c. a decrease in expenses and a decrease in capital; d. a decrease in expenses and an increase in revenue; e. none of these.
Which of the following is the least effective approach to quantifying expected benefits of an IT project?
A. Find out what other firms experienced in similar situations B. Consult with experts C. Review options with the hardware vendor D. Use simulation software
Positive psychologists define virtues as ______.
A. guiding principles B. positive moral traits C. a personal calling D. intense life experiences
Kenai Company sold $600 of merchandise to a customer who used a National Bank credit card. National Bank deducts a 3% service charge for sales on its credit cards. Kenai electronically remits the credit card sales receipts to the credit card company and receives payment immediately. The journal entry to record the collection from the credit card company would be:
A. Debit Accounts Receivable-National $582; debit Credit Card Expense $18 and credit Sales $600. B. Debit Cash $582 and credit Sales $582. C. Debit Cash of $618 and credit Accounts Receivable-National $618. D. Debit Cash of $618; credit Credit Card Expense $18 and credit Sales $600. E. Debit Cash $582; debit Credit Card Expense $18 and credit Sales $600.