The current balance sheet of Blawnox Inc reports total assets of $20 million, total liabilities of $2 million, and owners' equity of $18 million. Blawnox Inc is considering several financing possibilities in order to expand operations. What is the additional amount that Blawnox Inc can borrow and not exceed a debt to equity ratio of 0.3?
a. $5.4 million
b. $3.4 million
c. $5.5 million
d. $4.0 million
b
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When an individual entry is posted from the combination journal to a ledger account, what information is entered in the "Post. Ref." column of the combination journal?
a. the letters "CJ" b. the letters "CJ" and the page number c. the letters "CJ" and the invoice number d. the account number
In Korea 4 5683 968 can be interpreted as "I love you."
Indicate whether the statement is true or false
Inherent risk
a. exists because all control structures are flawed in some ways. b. is the likelihood that material misstatements exist in the financial statements of the firm. c. is associated with the unique characteristics of the business or industry of the client. d. is the likelihood that the auditor will not find material misstatements.
An increase in productive processing time will increase
a. throughput. b. process yield. c. return on investment. d. productive capacity.