Petro Oil Refinery asks Quality Bank for a loan to increase its oil inventory. Quality requires Robin, Petro's president, sign a personal guaranty to pay the debt if Petro defaults. Meanwhile, to sell fifty barrels of refined oil to Slick Lubricants, Inc, Petro asks its outside accountant Tina to co-sign a credit application. ? Jay is a surety for Karen's loan from Little Bank. Jay's right to
be reim-bursed by Karen after having paid her debt is the right of
A) contribution.
B) redemption.
C) reimbursement.
D) subrogation.
C
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Bonds whose indentures contain a provision which requires the issuing firm to make a provision for partial early retirement of the bond issue are sinking fund bonds and _____ bonds
a. callable bonds b. refunded bonds c. serial bonds d. convertible bonds e. zero coupon bonds
Fields Cutlery, a manufacturer of gourmet knife sets, produced 20,000 sets and sold 23,000 units during the current year. Beginning inventory under absorption costing consisted of 3,000 units valued at $66,000 (Direct materials $12 per unit; Direct labor, $3 per unit; Variable Overhead, $2 per unit, and Fixed overhead, $5 per unit.) All manufacturing costs have remained constant over the 2-year period. At year-end, the company reported the following income statement using absorption costing:Sales (23,000 × $45)$1,035,000 Cost of goods sold (23,000 × $22) 506,000 Gross margin$529,000 Selling and administrative expenses 115,000 Net income$414,000 60% of total selling and administrative expenses are variable. Compute net income under variable costing.
A. $644,000 B. $529,000 C. $414,000 D. $399,000 E. $429,000
Which of the following is a factor that is necessary to consider when entering alliances?
a. Lack of necessary internal capabilities and assets b. Unavailability of needed resources for purchase in the open marketplace c. High cost or risk associated with purchasing a firm d. All of the above
A boardinghouse keeper's obligations include
a. those of an ordinary bailee. b. offering accommodations to permanent residents. c. the right not to accept everyone who applies. d. all of these.