Early payment on a mortgage can result in a prepayment penalty
Indicate whether the statement is true or false.
TRUE
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Which of the following statements is true regarding the two allowance methods used to account for bad debts?
a. The percentage of net credit sales approach takes into account the existing balance in the Allowance for Doubtful Accounts account. b. The direct write-off method takes into account the existing balance in the Allowance for Doubtful Accounts account. c. The percentage of accounts receivable approach takes into account the existing balance in the Allowance for Doubtful Accounts account. d. The direct write-off method does a better job of matching revenues and expenses.
William and Nigel decide to start a partnership business. They ask their friend Sophia to become a limited partner in order to help them with additional funds to get the business started. Which of the following statements about Sophia would be correct if she becomes and remains a limited partner in this scenario?
A. She may be involved in management of the business but to a rather limited degree. B. She may lose her investment if the business fails, but she will have no personal liability for partnership debts. C. She may be considered an employee and therefore will be entitled to wages for the services she renders to the partnership. D. She cannot be entitled to any share in the profits of the business.
Which management function is focused on detecting when corrective action is needed in order to achieve objectives?
a. leading b. controlling c. planning d. organizing
The Basketball Division of Thunder Sports Enterprises reported the following financial data for the year: Assets available for use $1,200,000 Book Value $1,500,000 Market Value Residual income $108,000 Return on investment 14% Refer to Thunder Sports Enterprises. What was the target rate of return for Thunder Sports Enterprises?
a. 4% b. 5% c. 7% d. 9%