Why should employee paychecks be drawn against a special checking account?
A separate imprest account is established for the exact amount of the payroll based on the payroll summary. When the paychecks are cashed, this account should clear leaving a zero balance. Any errors in checks (additional checks or abnormal amounts) would result in a non-zero balance in the imprest account and/or some paycheck would not clear. This will alert management to the problem so corrective action can be taken.
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A company must repay the bank a single payment of $20,000 cash in 3 years for a loan it entered into. The loan is at 8% interest compounded annually. The present value of 1 (single sum) at 8% for 3 years is 0.7938. The present value of an annuity (series of payments) at 8% for 3 years is 2.5771. The present value of the loan (rounded) is:
A. $15,876. B. $7,761. C. $51,542. D. $20,000. E. $25,195.
A buying situation in which a business customer signals its satisfaction by agreeing to purchase the same product at the same price is called a
A. repeat buy. B. straight rebuy. C. new buy. D. modified rebuy. E. quick buy.
The customer whom Carlotta is calling on today has a(n) ________ buying center culture. This means that the decision process will involve reaching agreement among all members of the buying center.
A. consultative B. republican C. consensus D. democratic E. autocratic
When a company dissolves, preferred stockholders typically have the right to receive their share of corporate assets before common shareholders
Indicate whether the statement is true or false