Strong economic growth tends to reduce the probability that the issuer of a mortgage will default on its debt payments and therefore tends to decrease mortgage prices

a. True
b. False


b

Business

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In a three-variance method of factory overhead analysis, the variance that indicates that the volume of production was more or less than budgeted is the:

a. Quantity variance. b. Production-volume variance. c. Spending variance. d. Efficiency variance.

Business

The Lily Company uses the percent of receivables method of accounting for uncollectible accounts receivable, and a perpetual inventory system. As of January 1, its net accounts receivable totaled $192,000 (Accounts Receivable $200,000 less an $8,000 Allowance for Doubtful Accounts). During the current year, the following transactions occurred.  1)Merchandise costing $1,050,000 was sold on account for $1,400,000.  2)The company collected $1,294,000 from customers on account.3)$6,000 of accounts receivable were deemed uncollectible and written off.4)$1,000 of accounts receivable previously written off as uncollectible were recovered.5)At year-end, Lily Company estimates that 4% of its accounts receivable are uncollectible.Prepare journal entries to record these transactions. 

What will be an ideal response?

Business

When two companies merger they engage in a stock split

Indicate whether the statement is true or false.

Business

Which of the following statements is FALSE? A debenture

A) is a corporate bond B) provides security over a corporation's personal property C) provides security over a corporation's real property D) is a form of equity financing E) has a floating charge that can attach to assets if the corporation defaults on its payments

Business