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Answer the following statement true (T) or false (F)
True
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L & M loaned Joan $400 so that she could buy her textbooks for the current semester. L & M's terms for repayment of the loan (including interest) are $200 in two months, $200 in four months, and another $100 at the end of the fifth month. The legal maximum rate of interest on this type of loan is 6 percent per annum. L & M's loan is usurious.
Answer the following statement true (T) or false (F)
Which of the following accounts increases with a debit?
A) Cash B) Interest Payable C) Accounts Payable D) Common Stock
Based on the information in Table 4-2, and assuming the company's stock price is $50 per share, the
P/E ratio is A) 24.44. B) 27.50. C) 10.89. D) 14.33.
Which of the following is NOT one of the six basic questions that a forecast must answer?
A) Who will be using the forecast? B) How much time do I have to develop the forecast? C) What is the time period of the forecast? D) How relevant is and what is the availability of historical data? E) How much profit will the firm be able to make?