ABC Company made a $2,500 payment on account, to satisfy a previously recorded account payable. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.
What will be an ideal response?
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Which of the following is a true statement?
A. Companies usually prepare a pro forma income statement, pro forma balance sheet, and pro forma statement of cash flows. B. Pro forma financial statements are based on the company's budgets. C. Companies prepare pro forma financial statements to show how their performance for the period will "look" if actual results match the budget. D. All of the answers are correct.
If a firm has substantial capital or financing leases disclosed in the notes but not capitalized in the financial statements, then:
a. the times interest earned ratio will be overstated, based upon the financial statements. b. the fixed charge ratio will be overstated, based upon the financial statements. c. the debt ratio will be understated. d. the working capital will be understated. e. None of the answers are correct.
Typically the first step of the problem-solution sales presentation is to:
A. prepare a written problem-solution proposal for the prospect. B. have the prospect and the salesperson agree on the nature of the problem. C. analyze the prospect's problem in order to find possible solution. D. convince the prospect to allow the salesperson to analyze the problem. E. prepare the presentation based on previously gathered customer knowledge.
Which of the following refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographical area?
a. purchasing power b. balance of trade c. standard of living d. exchange rate