Which of the following statements is CORRECT?
A. If a firm has high current and quick ratios, then it must be managing its liquidity position well.
B. If a firm sold some inventory for cash and left the funds in its bank account, then its current ratio would probably not change much, but its quick ratio would decline.
C. If a firm sold some inventory on credit, then its current ratio would probably not change much, but its quick ratio would decline.
D. If a firm sold some inventory on credit as opposed to cash, then there is no reason to think that either its current or quick ratio would change.
E. The inventory turnover ratio and days sales outstanding (DSO) are two ratios that are used to assess how effectively a firm is managing its current assets.
Answer: E
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When data are positively skewed, the mean will usually be
A. greater than the median. B. smaller than the median. C. equal to the median. D. positive.
?One of the greatest expectations of _____ is easy payment for what we buy online.
Fill in the blank(s) with the appropriate word(s).
Which of the following is not a benefit of a store-within-a-store?
A. The host store can grow in a new direction. B. Consumers can purchase more items in a single trip. C. The host store generates increased revenue. D. The store within gets high pedestrian traffic. E. The host store and store within may have different brand images.
MacKenzie Company sold $600 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 4.5% service charge for sales on its credit cards. MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment immediately. The journal entry to record this sale transaction would be:
A. Debit Cash of $600 and credit Sales $600. B. Debit Accounts Receivable-Regional $573.00; debit Credit Card Expense $27.00 and credit Sales $600. C. Debit Cash of $600 and credit Accounts Receivable-Regional $600. D. Debit Cash $573.00 and credit Sales $573.00. E. Debit Cash $573.00; debit Credit Card Expense $27.00 and credit Sales $600.