Answer the following statements true (T) or false (F)
1. The cash ratio helps to determine a company's ability to meet its short-term obligations.
2. A cash ratio below 1.0 implies that the company has an insufficient amount of cash and cash equivalents to pay current liabilities.
3. A very low cash ratio does not send a strong message to investors and creditors that the company has the ability to repay its short-term debt.
4. The only time the Petty Cash account is used in a journal entry is when the account is established, increased, or decreased.
1. TRUE
2. TRUE
3. TRUE
4. TRUE
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One objective of the corporate income statement is to separate the results of continuing operations from those of discontinued operations
Indicate whether the statement is true or false
Which is true about outsourcing?
A. Successful outsourcing creates jobs for the organization hiring the outsourcer; however, it does not increase jobs for the supplier of the outsourced services. B. Support of custom-written applications is a popular activity to outsource as outsourcers typically have more time and resources to dedicate to that type of support. C. The advantage of outsourcing is that once the contract is signed, the company who has hired the outsourcer does not have responsibility for the outsourced services. D. Due to the desire to outsource, there has been an increase in the number of companies that offer service desk outsourcing services.
Nico sees that his former boss led the company by coercing employees into completing their tasks early. Nico would like to take a different approach by empowering his employees. What would be a positive FIRST step?
A. Call a company meeting and tell everyone how he plans to lead. B. Bribe his team of leaders to act like a friendly and open leadership staff. C. Begin immediately modeling the type of open leader he wants his employees to be. D. Write a company policy that penalized anyone for coercive behavior.
Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $300,000, and direct labor costs to be $150,000. Actual overhead costs for the year totaled $330,000, and actual direct labor costs totaled $170,000. At year-end, Factory Overhead account is:
A. Overapplied by $20,000. B. Neither overapplied nor underapplied. C. Underapplied by $10,000. D. Overapplied by $10,000. E. Overapplied by $170,000.