Which of the following statements is true of trade credit?

A. It is also called a revolving credit agreement.
B. It is a requirement lenders impose on borrowers as a condition of loans.
C. It is granted by suppliers after evaluating the creditworthiness of a firm.
D. It is the part of a firm's net income that the firm reinvests.


Answer: C

Business

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Lawrence, an employee of Triple Time, Inc., has gross salary for March of $4,000. The entire amount is under the OASDI limit of $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of 18%. Provide the journal entry to record salaries expense and payroll withholdings. (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.) Salaries will be paid at a later date. Omit explanation.

What will be an ideal response?

Business

Questions such as "What did you have for lunch a week ago?" are correct questions because consumers are very good at remembering quantities of products consumed

Indicate whether the statement is true or false

Business

Distribution requirements planning is identical to material requirements planning except instead of gross requirements, a DRP record shows forecasted demand

Indicate whether the statement is true or false.

Business

The Hope Scholarship Credit

A) is available for the first two-years of postsecondary education. B) may be taken along with the Lifetime Earning Credit in any given year. C) is available to all, regardless of income. D) may be claimed for only one student on a single family's return.

Business