Your new firm is operating in an all-cash environment without taxes. You sold $1,000 of inventory for three times the amount you paid for it. The accounting entries you would make for this transaction are:
A) $1000 increase in cash, $1,000 decrease in inventory.
B) $2,000 increase in cash.
C) $3,000 increase in cash, $1,000 decrease in inventory, $2,000 increase in accounts receivable.
D) $3,000 increase in cash, $1,000 decrease in inventory, $2,000 increase in retained earnings.
D
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Which of the following is not a task of systems implementation?
a. complete the design contained in the approved systems design document b. write, test, and document the programs and procedures required by the approved systems design document c. complete the preparation of user manuals d. determine, by thoroughly testing the system with programmers, that the system satisfies the programmer's requirements
If tangible exchanges are missing in a leader-follower relationship, ______.
a. it would probably cause problems b. it probably would not cause problems c. intangible exchanges would replace them d. intangible exchanges would probably grow stronger
An advantage of the single-step income statement over the multistep form is
a. the amount of information it provides. b. its simplicity. c. its comprehensiveness. d. its use in computing ratios.
Deposit term insurance is
A) typically a good buy, because it combines the benefits of both cash value insurance and pure term protection. B) low cost insurance sold by banks to their customers. C) typically a poor buy, because it is really high cost cash value insurance. D) high cost insurance sold by banks to their customers.