If a firm practices capital rationing, this means that it is accepting fewer projects than would be theoretically optimal; hence, it is not maximizing its theoretical value.
Answer the following statement true (T) or false (F)
True
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Which of the following methods is not an appropriate method for estimating bad debt expense for companies whose uncollectible accounts are material?
A) percentage of net credit sales B) percentage of outstanding accounts receivable C) aging of accounts receivable D) direct write-off method
According to Harvard Business School professor John Kotter, managers today spend only a quarter of their time:
a. Working with the boss b. Working with people outside the organization c. Working alone d. Working with their subordinates e. Working with clients
When convertible bonds are converted to a company's stock, the carrying value of the bonds is transferred to equity accounts and no gain or loss is recorded.
Answer the following statement true (T) or false (F)
Management of the Container Store feels that open sharing of information with its employees
a. far outweighs the disadvantages of information getting into the wrong hands. b. is not possible due to keen competition. c. causes information overload for employees. d. is possible only within the upper ranks of the company.