Which of the following statements is CORRECT?
A. A typical industrial company's balance sheet lists the firm's assets that will be converted to cash first, and then goes on down to list the firm's longest lived assets last.
B. The balance sheet for a given year is designed to give us an idea of what happened to the firm during that year.
C. The balance sheet for a given year tells us how much money the company earned during that year.
D. The difference between the total assets reported on the balance sheet and the debts reported on this statement tells us the current market value of the stockholders' equity, assuming the statements are prepared in accordance with generally accepted accounting principles (GAAP).
E. For most companies, the market value of the stock equals the book value of the stock as reported on the balance sheet.
Answer: A
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Answer the following statements true (T) or false (F)
1) When businesses accept payment by credit and debit cards, the costs of processing fees are greater than the benefits of transferring the risk of not being able to collect from the customer and avoiding the costs associated with credit customers. 2) Credit cards reduce the customer's bank account immediately but allow the customer to pay electronically instead of with currency or writing a check. 3) Factoring occurs when a business sells its receivables to a finance company or bank. 4) When a business factors its receivables, it uses the receivables as security for a loan. 5) When a business factors its receivables, the factor collects cash on the receivables.
Your company's vision defines the work environment.
Answer the following statement true (T) or false (F)
With nonconforming goods, the risk of loss passes to the buyer if the buyer accepts the goods in spite of their defects
Indicate whether the statement is true or false
Risk managers are concerned with policy limits and deductible size contained in insurance contracts because:
A) an increased deductible amount increases the policy's premium B) the policy limit and the deductible are the only determinants of whether the policy will pay the claim C) they determine how much of the exposure the insured retains and transfers D) premiums set by policy limit and deductible are not tax deductible whereas uninsured losses are deductible