A firm needs ________ to pay for short-term expenses such as employee salaries, advertising, marketing research, inventory storing costs, and what the firm owes suppliers.
A. working capital
B. prepaid expenses
C. overhead
D. current assets
E. debt financing
Answer: A
You might also like to view...
According to the capital asset pricing model (CAPM), the return to a stock
A. follows a random walk. B. depends on oil prices, interest rates, and economic growth. C. depends on how risky the stock is compared with the market average. D. depends on the stock's risk and the risk to bonds.
Middle-of-the-road management best describes leaders who are ______.
A. avoiding B. empathetic C. compromising D. accommodating
Pager Corporation acquires 30% of the outstanding voting common shares of the Intercomm Corporation for $600,000 . Pager Corporation acquires the investment in Intercomm Corporation by buying previously issued shares of Intercomm Corporation from other investors. Suppose that Intercomm Corporation reports earnings of $100,000 and pays dividends of $40,000, during the next accounting period. As a
result, Pager Corporation's entries are: a. Equity in Earnings of Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 Investment in Stock of Intercomm Corporation . . . . . . . . . . . . . . . . . .30,000 Investment in Stock of Intercomm Corporation. . . . . . . . . . .. . . . . 12,000 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000 b. Investment in Stock of Intercomm Corporation . . . . . . . . . . . . . . . 30,000 Equity in Earnings of Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000 Investment in Stock of Intercomm Corporation. . . . . . . . . . . . . . . . . . . . 12,000 c. Equity in Earnings of Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . .100,000 Investment in Stock of Intercomm Corporation . . . . . . . . . . . . . . . . . 100,000 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000 Investment in Stock of Intercomm Corporation. . . . . . . . . . . . . . . . . . . . 12,000 d. Investment in Stock of Intercomm Corporation . . . . . . . . . . . . . . . 100,000 Equity in Earnings of Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000 Investment in Stock of Intercomm Corporation. . . . . . . . . . . . . . . . . . . . 12,000 e. Investment in Stock of Intercomm Corporation . . . . . . . . . . . . . . . 30,000 Investment Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000 Investment in Stock of Intercomm Corporation. . . . . . . . . . . . . . . . . . . . 12,000
One on the following will not be found on the balance sheet of a manufacturing company
A) cost of goods sold B) materials C) work in process D) finished goods