Under the perpetual inventory system, in addition to making the entry to record a sale, a company would
a. record an increase in inventory corresponding to the amount of the sale.
b. record a decrease in inventory and an increase in cost of goods sold for the cost of the merchandise sold.
c. record an increase in inventory corresponding to the cost of the inventory.
d. make no additional entry until the end of the period.
B
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The current ratio is one of the most common measures of solvency.
Answer the following statement true (T) or false (F)
If a firm has no operating leverage and no financial leverage, then a 10% increase in sales will have
what effect on EPS? A) EPS will remain the same. B) EPS will increase by 10%. C) EPS will increase by less than 10%. D) EPS will decrease by 10%.
A form stating the name of an unsecured creditor and the amount of the claim against the debtor is called a(n)
A. order for relief. B. automatic stay. C. proof of claim. D. reaffirmation form.
In a large university, 20% of the students are Business majors. A random sample of 100 students is selected, and their majors are recorded
a. Compute the standard error of the proportion. b. What is the probability that the sample contains at least 12 Business majors? c. What is the probability that the sample contains less than 15 Business majors? d. What is the probability that the sample contains between 12 and 14 Business majors?