Are all decreases to cash the result of an unfavorable situation?
A) Yes, decreases to cash are always bad.
B) No, cash could decrease as a result of acquiring long-term assets which the company needs to expand or stay competitive.
C) Yes, cash could decrease as a result of paying off long-term debt which is an unfavorable action to take.
D) No, cash could decrease because the company issued more stock.
B) No, cash could decrease as a result of acquiring long-term assets which the company needs to expand or stay competitive.
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Match the term with its definition.
A. Outstanding credit that is owed to suppliers B. The amount of credit extended to customers C. Total (cumulative) depreciation expense taken over an asset's life D. Stock shares that represent ownership in a corporation E. Assets that can be converted into cash relatively quickly F. Borrowed money that must be repaid within 12 months G. A measure of a company's relative liquidity, determined by dividing current assets by current liabilities H. Physical assets that will be used in the business for more than one year, such as equipment, buildings, and land I. Depreciable assets at their original cost, before any depreciation expense has been taken J. K. Intangible assets, such as patents, copyrights, and goodwill
On January 1 . 2014, Marco Hospital issued a $250,000, 1 . percent, 5-year bond for $231,601 . Interest is payable on June 30 and December 31 . Marco uses the effective-interest method to amortize all premiums and discounts. Assuming an effective interest rate of 1 . percent, approximately how much discount will be amortized on December 31 . 2014?
a. $2,230 b. $1,480 c. $1,396 d. $987
Alice offers to sell her car to Barry for $500, and Barry accepts. Alice's car has a market value of $1,000 but this fact is unknown to Alice. The contract is enforceable
a. True b. False Indicate whether the statement is true or false
Given the following opportunity loss function, determine the loss when 1,100 units are sold
Opportunity loss = 3 (1,000 - X) for X ? 1,000, otherwise 0. A) 0 B) -300 C) 300 D) 3 E) 600