When the dividend rate on preferred stock is less than the rate of return earned on a corporation's assets, it is called:
A. Premium on stock.
B. Preemptive right.
C. Capital gain.
D. Financial leverage.
E. Discount on stock.
Answer: D
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Overhead costs are traced to products in the same way that direct materials and direct labor are traced
Indicate whether the statement is true or false
The expensing of a long-lived asset such as a wastebasket is justified by which of the following accounting rules or principles?
a. Matching b. Materiality c. Full disclosure d. Consistency
Use this information to answer the following question. Panadora Company has the following information for the pay period of January 1-15, 2014. Payment occurs on January 20. Gross payroll $32,000 Federal income taxes withheld $3,600 Social security and Medicare rate 7.65% Federal unemployment tax rate 0.8% State unemployment tax rate 5.4% The entry to record the payroll taxes expense would
include a credit to A) Salaries Payable. B) Federal Income Taxes Payable. C) Social Security Tax Payable. D) Cash.
What is the function of a channel sales representative?
A. to promote the firm and encourage demand for its products B. to create customized solutions for customers C. to process customer-initiated orders D. to secure new distribution intermediaries E. to handle all aspects of delivery