The excess of current assets over current liabilities is referred to as working capital
a. True
b. False
Indicate whether the statement is true or false
True
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According to the “born good” philosophy of human nature, which of the following is a person imbued with since birth?
a. a conscience that represents pure goodness b. a soul programmed with both goodness and sin c. inherited sin that must be rejected d. a “tabula rasa”
Which of the following would not be used in preparing a cash budget for October?
A. Budgeted sales and collections for October. B. Estimated depreciation expense for October. C. Budgeted capital equipment purchases for October. D. Budgeted salaries expense for October. E. Beginning cash balance on October 1.
IPM Inc. and Zeta Company formed IPeta Inc. by transferring business assets in exchange for 1,000 shares of IPeta common stock. IPM transferred assets with a $675,000 FMV and a $283,000 adjusted tax basis and received 600 shares. Zeta transferred assets with a $450,000 FMV and a $98,000 adjusted tax basis and received 400 shares. Compute IPM and Zeta's realized and recognized gain on the exchange.
A. IPM realized $392,000 gain and recognized no gain. Zeta realized and recognized $352,000 gain. B. IPM realized and recognized $392,000 gain. Zeta realized and recognized $352,000 gain. C. IPM realized $392,000 gain and recognized no gain. Zeta realized $352,000 gain and recognized no gain D. There is not enough information to compute realized and recognized gain.
If a stock is initially offered to the public for $20 in an underwriting but the price immediately falls to $15, 1. the firm received $20 a share 2. the initial investors sustain a loss 3. demand exceeded supply 4. supply exceeded demand
A. 1, 2, and 3 B. 1, 2, and 4 C. 2 and 3 D. 2 and 4