For firms that are in a financial position to take a cash discount, it is advisable not to take the discount if the terms offered are 2/10 net 30
Indicate whether the statement is true or false
FALSE
You might also like to view...
On January 1, 2018, Como Company purchased 45% of the outstanding common shares of the Lite Company for $200,000. The net assets of Lite Company totaled $400,000. The inventory had a book value of $100,000 and a fair value of $120,000. Excess cost attributable to inventory is written off in 2018. During 2018, Lite Company earned $200,000 and declared a dividend of $40,000 for the year.The excess amount paid for Lite Company attributable to inventory is
A. $9,000. B. $20,000. C. $11,000. D. $22,000.
Partners Ken and Macki each have a $40,000 capital balance and share income and losses in a 3:2 . Cash equals $20,000, noncash assets equal $120,000, and liabilities equal $60,000 . If the noncash assets are sold for $60,000, and both partners agree to make up any capital deficits with personal cash contributions, Partner Macki will eventually receive cash of
a. $0 b. $4,000 c. $16,000 d. $24,000
Which of the following may pay dividends?
A) preferred stock B) investors C) Treasury bills D) notes payable
Which of the following is a symptom of groupthink?
A. the illusion that everyone in the group holds a different viewpoint B. the belief that the group can make mistakes C. the belief that disagreements are to be faced D. the tendency to direct pressure on any dissenting group member