Hill has a fiscal year-end of December 31. In February, Hill purchased a piece of equipment for $12,000 with a four-year useful life and a zero residual value. Hill used the equipment to produce finished goods in March that were sold on credit in April with cash collected in May. Hill uses straight-line depreciation. The amount of depreciation expense affecting the reported income on the first
quarter income statement was
A) $250
B) $0
C) $500
D) $700
B
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Financial assets include all of the following except
a. Excess cash b. short term investments c. intangible assets d. long trm investments
Answer the following statements true (T) or false (F)
1. Accounts receivable represent the cash owed to the venture by customers for goods and/or services that have been sold to them and paid for. 2. The days sales outstanding (DSO) ratio is used to assess the average number of days a venture takes to collect its receivables after they have been invoiced. 3. The cross-sectional benchmark approach compares the firm to two or more peer group companies at a specific point in time. 4. A company’s leverage ratio measures how much debt versus equity financing the firm has on its balance sheet.
_____ is a graphical summary of data previously summarized in a frequency distribution
a. Box plot b. Histogram c. Line chart d. Scatter chart
People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs
Indicate whether the statement is true or false.