Toby signs a note "payable to the order of United Credit Union." Unless Toby has a valid defense against payment, Toby's liability on this note is
A. immediate.
B. imposed only after payment is demanded.
C. postponed until the note is dishonored by United Credit Union.
D. suspended until payment is due.
Answer: A
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Plant assets are depreciated because
a. the accrual basis of accounting requires matching of costs to revenues. b. some plant assets last longer than others. c. useful lives cannot be reasonably estimated. d. the replacement cost of plant assets may fluctuate over time.
Consumers often use the prices of ________ items, such as a can of Coke, to form an overall impression of the store's prices.
A. point-of-purchase B. benchmark C. stoplight D. value-based E. loss-leader
Which of the following is not a typical reason for unethical behavior?
A) We rationalize that what is ethical depends upon the circumstances. B) We do what we must to win. C) We rationalize that everyone is doing it. D) We enjoy the thrill of "getting away with it." E) We take the easy route to accomplish our goal.
What is the significance of the name preferred stock?
A. It is the type of stock that most investors would rather have. B. Its claims on dividends are paid before those of common stock. C. The overall return on preferred stock is higher than that on common stock. D. This stock is available only to select individuals associated with the company. E. This stock provides the most powerful voting rights.