Lane Co instructs its bank, Second Street Bank, to pay $200,000 to Moffett, Inc, also a customer of Second Street Bank. The bank executes the payment order by crediting Moffett's account with the $200,000 and notifying Moffett that the credit was made and is available. In this case:
a. Lane Co. is the originator; Second Street Bank is both the sender and the intermediary.
b. Lane Co. is both the originator and the sender, and Moffett, Inc. is the beneficiary.
c. the transaction is governed by the EFTA.
d. Lane Co.'s payment order had to be communicated either electronically or in writing.
b
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(CMA adapted, Jun 97 #14) Refer to the Devlin Company example. Assuming there are no preferred stock dividends in arrears, Devlin Company's return on common shareholders' equity for the year ended May 31, Year 7, was
a. 6.3 percent b. 7.5 percent c. 7.8 percent d. 10.5 percent e. 15.5 percent
Standard Corporation has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHs) as follows:Standard overhead costs per unit:Variable portion: 2 DLHs × $3 per DLH = $6Fixed portion: 2 DLHs × $5 per DLH = $10The following data pertain to operations in April: Actual output 80,000unitsActual direct labor cost$644,000 Actual direct labor-hours worked 165,000DLHsVariable overhead cost incurred$518,000 Fixed overhead cost incurred$860,000 The variable overhead rate variance for April was:
A. $15,000 Unfavorable B. $23,000 Unfavorable C. $38,000 Unfavorable D. $38,000 Favorable
Budgets that are periodically revised and have new periods added to replace those that have lapsed are called:
A. Capital expenditures budgets. B. Sales budgets. C. Rolling budgets. D. Cash budgets. E. Production budgets.
A principal must ratify an act done by an agent with implied authority before the principal is
liable for that act. Indicate whether the statement is true or false