Baker goes into bankruptcy owing $5,000 as wages to his employees. There is enough in his estate to pay all costs of administration and enough to pay his employees, but if the employees are paid, there will be nothing left for the general creditors. Which of the following is NOT true under the above facts?
A) The Bankruptcy Code provides for priority of wages owed to employees.
B) Secured creditors will be paid to the extent of their security interest before the employees will be paid.
C) The general creditors will not be paid.
D) The general creditors can be paid before the employees if they file a claim with the court.
D
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Which size category of banks generally has the smallest spread?
A. The 10 smallest banks B. The 100 smallest banks C. Medium-sized banks D. Large banks
Which of the following statements is true?
A) The overhead budget is typically composed of variable overhead and fixed overhead. B) The direct labor budget uses an average wage rate for direct labor. C) The production budget is not converted into dollars. D) The sales budget includes both units and dollars. E) All of these.
A disadvantage of a straight commission compensation plan is that
A. it provides incentive to expand sales volume. B. the overall compensation is usually lower than a straight salary compensation plan. C. it can discourage salespeople from providing customer service. D. it is difficult to administer. E. it includes nonselling activities that take time away from selling.
Poole Company purchased two identical inventory items. One of the items, purchased in January, cost $4.50. The other, purchased in February, cost $4.75. One of the items was sold in March at a selling price of $7.50. Poole uses LIFO. Which of the following statements is true?
A. The amount of cost of goods sold would be $4.50. B. The amount of gross margin would be $2.75. C. The amount of ending inventory would be $4.625. D. The balance in ending inventory would be $4.75.