If the inflation rate is 2%, the principal of a Treasury inflation protection security will from $1,000 to $1,020

Indicate whether the statement is true or false.


Answer: TRUE

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Bonds issued in a series so that a specified amount of principal matures each year are called term bonds

a. True b. False Indicate whether the statement is true or false

Business

The data presented below is for Mellon Corporation for the year ended December 31, 2015: Sales (100% on credit) $1,500,000 Sales returns 60,000 Accounts Receivable (December 31, 2015) 250,000 Allowance for Doubtful Accounts (Before adjustment at December 31, 2015) 3,000 Estimated amount of uncollectible accounts based on an aging analysis 31,000 Refer to information for Mellon Corporation. If

Mellon uses 2% of net credit sales to estimate its bad debts, what will be the balance in the Allowance for Doubtful Accounts account after the adjustment for bad debts? a. $33,000 b. $31,800 c. $27,000 d. $25,800

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Jackie's parents loaned her $80,000 to fund her college education. Her parents are not charging interest. They desire to be paid one lump sum of $80,000 when Jackie can accumulate that amount. Jackie established a savings plan that earns 8% compounded annually. Her new job promises to pay an annual holiday bonus that will enable her to make equal annual, year-end deposits of $6,400. Approximately

how many years will it take Jackie to accumulate the $80,000? A) 8 years B) 8.5 years C) 9 years D) 12.5 years

Business

To control for extraneous variables, a researcher may conduct an experiment in an artificial environment. This enhances external validity, but it may limit the generalizability of the results, thereby reducing internal validity

Indicate whether the statement is true or false

Business