Which of the following statements is CORRECT?
A. A conservative financing policy is one where the firm finances part of its fixed assets with short-term capital and all of its net working capital with short-term funds.
B. If a company receives trade credit under terms of 2/10 net 30, this implies that the company has 10 days of free trade credit.
C. One cannot tell if a firm uses a current asset financing policy that matches maturities, is conservative, or is aggressive without an examination of its cash budget.
D. If a firm has a relatively aggressive current asset financing policy vis-รก-vis other firms in its industry, then its current ratio will probably be relatively high.
E. Accruals are an expensive but commonly used way to finance working capital.
Answer: B
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Your friend Scotty informs you that in 2019 he received a tax-free reimbursement of some medical expenses he paid in 2018. Which of the following statements best explains why Scotty is not required to report the reimbursement in gross income?
A. Scotty itemized deductions in 2018. B. Scotty did not itemize deductions in 2018. C. Scotty itemized deductions in 2019. D. Scotty did not itemize deductions in 2019. E. Scotty itemized deductions in 2019 but not in 2018.
Policies and programs meeting public needs can be achieved most effectively and responsibly through ________ and ________.
A) Power; jurisdiction B) Collective efforts; collaborative processes C) Empowerment; collective input D) Decision making; authority
A usury statute is a law establishing a maximum rate of permissible interest for which a lender and borrower of money may contract
Indicate whether the statement is true or false
Liability for Employee's Acts. Federated Financial Reserve Corp leases consumer and business equipment. As part of its credit-approval and debt-collection practices, Federated hires credit collectors and authorizes them to obtain credit reports on its
customers. Janice Caylor, a Federated collector, used this authority to obtain a report on Karen Jones, who was not a Federated customer but who was the former wife of Caylor's roommate, Randy Lind. When Jones discovered that Lind had her address and how he had obtained it, she filed a suit in a federal district court against Federated and the others. Jones claimed in part that they had violated the Fair Credit Reporting Act, the goal of which is to protect consumers from the improper use of credit reports. Under what theory might an employer be held liable for an employee's violation of a statute? Does that theory apply in this case? Explain.