Marley Financial plans to sell $50,000,000 of 120-day commercial paper, on which it expects to pay
discounted interest at a rate of 5% per year. Dealer fees are expected to be $30,000. The effective
cost of credit to Marley Financial is
A) 6.22%. B) 5.64%. C) 7.53%. D) 5.27%.
D
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When pledging accounts receivable
A) title to the receivables reverts to the lender. B) the pledges are usually made with recourse. C) the pledge arrangements become the new valuation methodology entered in the accounting records. D) collection responsibility reverts to the lender.
Shaun and Rick are partners. Shaun has a capital balance of $12,000 and Rick has a capital balance of $10,000. Edwin contributes a building with a current market value of $8000 to acquire an interest in the new partnership. Which of the following is TRUE of the effect of the transaction on the balance sheet? (Assume no bonus to any partner.)
A) Both assets and equity will increase by $8000. B) Both assets and liabilities will decrease by $8000. C) Both assets and equity will decrease by $8000. D) Both assets and liabilities will increase by $8000.
An entity that reports a discontinued operation or an extraordinary item shall present basic and diluted earnings per share amounts for those line items
a. either on the face of the income statement or in the notes to the financial statements. b. only in the notes to the financial statements. c. only on the face of the income statement. d. only if management chooses to do so as these amounts are not required to be disclosed either in the financial statements or the notes thereto.
Which of the following is the intermediary in a one -level distribution channel structure?
A) jobber B) distributor C) retailer D) wholesaler