Which of the following statements best defines a surety?
A. A person who is not liable for the payment of a principal's debts
B. A person who is not entitled to be reimbursed by the principal
C. A person who makes a separate promise to be liable for the payment of a principal's debts
D. A person who is liable for the performance of another person's duty
Answer: D
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Answer the following statement true (T) or false (F)
Examples of functional accounts include taxes, supplies, and wages.
Answer the following statement true (T) or false (F)
An offer has come in for a one-time sale of 300 units at a special price of $120 per unit. The marketing manager says that the sale will not affect the company's regular sales activities, and that it will not require any variable selling and administrative costs. The production manager says that there is plenty of excess capacity and the sale will not impact fixed costs in any way. What is the effect of this deal on operating income?
Pisces Company manufactures sonars for fishing boats. Model 100 sells for $400. Pisces produces and sells 5000 units per year. Cost data are as follows:
A) Operating income increases by $400.
B) Operating income increases by $1800.
C) Operating income decreases by $6000.
D) Operating income increases by $6000.
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Indicate whether the statement is true or false