The federal Truth-in-Lending law:
a. requires the lender to show how much profit is made on a particular sale.
b. regulates the maximum cost of credit.
c. is a uniform law, like the UCC, made available to all states.
d. is intended to allow comparison of various credit offers or advertisements.
d
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Some of the steps in the accounting cycle are listed below. Select the choice that places these steps in the correct order. 1 . Close the accounts. 2 . Post transactions to accounts in the ledger. 3 . Journalize daily transactions. 4 . Record and post adjustments. 5 . Prepare financial statements
a. 2, 3, 4, 5, 1 b. 3, 2, 4, 5, 1 c. 3, 2, 4, 1, 5 d. 3, 2, 5, 4, 1
Answer the following statements true (T) or false (F)
1.Voluntary export restraint agreements typically apply to all of the world's exporting nations rather than only the most important exporting nations. 2.For an export quota applied to manufactured goods, foreign exporters tend to capture only a negligible share of the quota's revenue effect. 3.When increases in nonrestraint supply offset part of the cutback in shipments that occur under an export quota, the overall inefficiency loss for the importing country is less than that which would have occurred in the absence of nonrestrained exports. 4.Export quotas, placed on Japanese auto shipments to the United States in the 1980s, led to rising prices of both Japanese autos and U.S.-produced autos purchased by the U.S. consumer. 5.During the 1980s, U.S. steel-using companies (Caterpillar) actively supported the U.S. government's negotiation of voluntary export agreements with foreign steel-exporting countries.
Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements—Decrease in Prepaid Expenses—indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:
a. Add to net income to arrive at net cash flows from operating activities b. Subtract from net income to arrive at net cash flows from operating activities c. Not used to adjust net income to calculate net cash flows from operating activities
All of the following are likely to increase the cost of a company's short-term financing EXCEPT
A) an increase in the company's debt rating by Moody's or Standard and Poors. B) an increase in the compensating balance required. C) taking a loan on a discount basis. D) an increase in the bank's prime lending rate.