Merchandise is sold FOB shipping point. If the seller prepays the delivery costs and adds them to the customer's invoice, the entry the seller must prepare, will:

A) debit Cash and credit Inventory.
B) debit Inventory and credit Cash.
C) debit Delivery Expense and credit Cash.
D) debit Accounts Receivable and credit Cash.


D) debit Accounts Receivable and credit Cash.

Business

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Days' sales uncollected cannot be calculated without first knowing the receivable turnover

Indicate whether the statement is true or false

Business

Suppose you are the president of a small, publicly-traded corporation. Since you believe that your firm's stock price is temporarily depressed, all additional capital funds required during the current year will be raised using debt. In this case, the appropriate marginal cost of capital for use in capital budgeting during the current year is the after-tax cost of debt.

Answer the following statement true (T) or false (F)

Business

Police Officer Paul apprehends a wanted criminal and then demands the $10,000 reward offered by Crime Stoppers. Which of the following statements is true?

a. Police Officer Paul is not entitled to the reward because past consideration is never valid consideration. b. Police Officer Paul is entitled to the reward because he puts his life on the line every day. c. Police Officer Paul is not entitled to the reward because he was under a pre-existing duty to make the arrest. d. Police Officer Paul is not entitled to the reward but may have an argument under promissory estoppel.

Business

The number of servers, c, in a multiple-server queuing system must be greater than the average queue length

Indicate whether this statement is true or false.

Business