A company reports the following amounts: Assets = $6,000; Liabilities = $2,000; Stockholders' equity = $4,000; Dividends = $500; Revenues = $5,000; and Expenses = $3,000. What amount is reported for net income?
What will be an ideal response?
$2,000
Net income = Revenues ($5,000) -Expenses ($3,000) = $2,000.
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Why is cash management important to a business?
What will be an ideal response?
Which of the following is the correct interpretation of a degree of operating leverage of 5?
A. Operating leverage of 5 means that if sales increase by 5% the firm will hit its break-even point. B. Operating leverage of 5 means that the company would need to increase sales by 5 times in order to hit its break-even point. C. Operating leverage of 5 measures the degree of debt employed by the firm's debt structure. D. Operating leverage of 5 means that if sales increase by 5%, there will be a 25% increase in the firm's pretax profit. E. Operating leverage of 5 means that sales can decrease by 5% before the firm's current level of sales will hit the break-even point.
The time at which materials that have already been ordered will arrive is called ______.
A. planned order receipt B. planned order release C. scheduled receipt D. scheduled order arrival
Furniture Depot sells Gail a bedroom suite on credit. Gail fails to make the scheduled payments for six months. Furniture Depot sends her a letter, asking for immediate payment. This is a violation of
A. no federal law. B. the Fair and Accurate Credit Transactions Act. C. the Fair Debt Collection Practices Act. D. the Truth-in-Lending Act.