If a proposed expenditure of $70,000 for a fixed asset with a 4-year life has an annual expected net cash flow and net income of $32,000 and $12,000, respectively, the cash payback period is 2.5 years
Indicate whether the statement is true or false
False
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A firm may factor its accounts receivable to a bank or other financial institution in exchange for cash. Which of the following is/are not true?
a. The lender physically controls the receivables and collects cash from customers. b. Accounts receivable that the firm has factored do not appear on the balance sheet. c. The firm has sold the accounts receivable. d. The firm should disclose the factoring arrangement in its financial reports. e. None of the above.
Haptic communication is not status-driven
Indicate whether the statement is true or false
Audio Science Company's agent Bailey is authorized to draw checks on Audio Science's account in Citizen Bank. The checks are preprinted with the company name. Bailey writes a check "pay to the order of Darlene [signed] Bailey." Darlene presents the check for payment. If Citizen Bank dishonors it, liability extends to
A. no one. B. Audio Science and Bailey. C. Audio Science only. D. Bailey only.
In all of the states, a fee tail is treated as a fee simple absolute
Indicate whether the statement is true or false