Tim buys a high-powered tool from Binford Tools to use on the construction of his own garage. Binford Tools provides a full warranty on the tool for the first six months. To pay for the tool, Tim signs a negotiable promissory note which contains the FTC Consumer Credit Notice. Binford properly negotiates the note to First Finance. Within three weeks, the tool stops working and Binford refuses to repair or replace it. In the meantime, First Finance demands payment from Tim. Under the Federal Trade Commission rules, this consumer credit situation means First Finance
A. can collect if it is a holder in due course.
B. can collect if it is not a holder in due course.
C. can collect whether or not it is a holder in due course.
D. cannot collect.
Answer: D
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The following events apply to Bowman's Cleaning Service for Year 1.1). Issued stock for $44,000 cash2). On May 1, paid $27,000 for one year's rent in advance3). Purchased on account $4,500 of supplies to be used in the business4). Performed services of $68,400 and received cash5). At December 31, adjusted the records for the expired rent6). At December 31, an inventory of supplies showed that $660 of supplies were still unusedRequired: Show how each of these transactions affects the company's accounts. Calculate the year-end total for each account.
What will be an ideal response?
Marginal cost-benefit analysis states that financial decisions should be made and actions should be taken only when the added benefits exceed the added costs
Indicate whether the statement is true or false
Projects C and D both have normal cash flows and are mutually exclusive. Project C has a higher NPV if the cost of capital is less than 12%, whereas Project D has a higher NPV if the cost of capital exceeds 12%. Which of the following statements is CORRECT?
A. Project D is probably larger in scale than Project C. B. Project C probably has a faster payback. C. Project C probably has a higher IRR. D. The crossover rate between the two projects is below 12%. E. Project D probably has a higher IRR.
Management accountants are no longer involved with recording transactions.
Indicate whether the statement is true or false.