Ratios used to evaluate the allowance for uncollectibles are
a. Bad Debt Expense to Sales Revenue and the ratio of the Accounts Receivable, Gross to Allowance for Uncollectibles to Accounts.
b. Sales Revenue to Bad Debt Expense and the ratio of the Accounts Receivable, Gross to Allowance for Uncollectibles to Accounts.
c. Sales Revenue to Bad Debt Expense and the ratio of the Allowance for Uncollectibles to Accounts Receivable, Gross.
d. Bad Debt Expense to Sales Revenue and the ratio of the Allowance for Uncollectibles to Accounts Receivable, Gross.
e. none of the above.
D
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In Big Bluff Heirlooms, a furniture manufacturing company, the arrival and departure times to and from work are specified to the minute, with time clocks used to control deviant behavior. It can be said that the company is high in
A. division of labor. B. work differentiation. C. decentralization. D. formalization. E. centralization.
To rescind a contract, the parties must make restitution of the consideration they received under the contract
Indicate whether the statement is true or false
Which of the following is a difference between dividends on stock and interest on bonds?
A. A firm has a legal obligation to pay interest on bonds, whereas it has no legal obligation to pay dividends on stock. B. Dividend on stock is paid by the issuer of the stock, whereas interest on bond is paid by the bondholder. C. A firm has a legal obligation to pay dividends on stock, whereas it has no legal obligation to pay interest on bonds. D. Dividend on stock is paid by the stockholder, whereas interest on bond is paid by the issuer of the bond.
Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $24,000 and will have a 6-year useful life and a $6,000 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $28,000 per year. The cost of these prescriptions to the pharmacy will be about $22,000 per year. The pharmacy depreciates all assets using the straight-line method. The payback period for the auto is closest to (Ignore income taxes.):
A. 2 years B. 1.2 years C. 1.8 years D. 4 years