The two basic elements of consideration are intention and agreement
a. True
b. False
Indicate whether the statement is true or false
False
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McDonald's Corporation is the largest food service organization in the world. The proper handling of cash and food is important to the profitability of McDonald's. Based on your personal knowledge of McDonald's and the internal control concepts and
procedures described in the textbook, answer the following questions. REQUIRED: Describe procedures that you believe McDonald's may use to control cash receipts.
United States immigration officers may not detain illegal aliens under warrants issued
by the Attorney General unless a magistrate has ruled the warrant valid. a. True b. False
A dry cleaning business offers a pick-up and delivery service for a 10 percent surcharge. Management believes 60 percent of the existing customers will take advantage of this service
They are also considering offering customers the option of opening an account and receiving monthly bills. They believe 60 percent of customers (regardless of whether or not they use the pick-up service) will use the account service. If the two services are introduced to the market, what is the probability that a customer uses only one of these services? A) 0.40 B) 0.60 C) 0.48 D) 0.24 E) None of the above
Which of the following statements is CORRECT?
A. The current cash flow from existing assets is highly relevant to investors. However, since the value of the firm depends primarily upon its growth opportunities, accounting net income projections from those opportunities are the only relevant future flows with which investors are concerned. B. Two metrics that are used to measure a company's financial performance are net income and free cash flow. Accountants tend to emphasize net income as calculated in accordance with generally accepted accounting principles. Finance people generally put at least as much weight on free cash flows as they do on net income. C. To estimate the net cash provided by operations, depreciation must be subtracted from net income because depreciation is a non-cash charge that has been added to revenue. D. Interest paid by a corporation is a tax deduction for the paying corporation, but dividends paid are not deductible. This treatment, other things held constant, tends to discourage the use of debt financing by corporations. E. If Congress changed depreciation allowances so that companies had to report higher depreciation levels for tax purposes in 2018, companies would have lower free cash flows in 2018.