Financial ControlsRuth Moody works as a freelance financial consultant. She renders financial services to individuals and small businesses. Entropic Communications, Inc., a fabless semiconductor company, seeks her services to study the financial stability of their company.Ruth identifies the firm's leverage ratio to be very high. What suggestion could Ruth give to help the firm reduce its leverage ratio?
A. Increase the money supply by selling a part of its assets.
B. Pay back part of its debts to improve the ratio.
C. Maintain more current assets than current liabilities.
D. Reduce the sales to total assets ratio of the firm.
Answer: B
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A liability is recognized when
a. the exact due date is known. b. it is paid for. c. an obligation has arisen. d. the exact amount of the liability is known.
The _____ basis of accounting typically recognizes revenue when a firm sells goods (manufacturing and retailing firms) or renders services (service firms), and recognizes expenses in the period when the firm recognizes the revenues that the costs helped produce
a. cash b. accrual c. funds flow d. tax e. none of the above
In a buying center, the person who has the formal or informal power to choose or approve the selection of a supplier or brand is known as the _____
a. decider b. purchaser c. gatekeeper d. influencer
Clean Air Committee Requests Carpooling As the new chairperson for your company's Clean Air committee, one of your responsibilities is to encourage employees to form car pools. In the past, employees have resisted forming car pools for a number of
reasons, including the lack of an organized program, the complexity of flextime schedules, and the extra time needed to pick people up. Your company has agreed to provide privileged parking spaces to car pool participants but will not provide any monetary incentives. Required: Write a persuasive memo or email to all employees encouraging them to form carpools. You may add any terms of persuasion necessary to influence them to participate.