Which of the following is not one of the primary types of the financing activities in the statement of cash flows?
A. Buying equipment
B. Borrowing money
C. Issuing shares of stock
D. Paying dividends
Answer: A. Buying equipment
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In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel count, inspect the goods, and complete a:
A) purchase order B) sales invoice C) receiving report D) purchase requisition
The ________ overhead rate method uses a single rate for allocating overhead costs to products.
Fill in the blank(s) with the appropriate word(s).
Following is information about three bonds: ? ? Issuer Yield Time to Maturity Treasury 2.0% 6 months Company A 5.0 5 years Company B 5.3 8 years ? Although none of the bonds has a
liquidity premium, any bond with a maturity equal to one year or greater has a maturity risk premium (MRP). Except for their terms to maturity, the characteristics of the Company A and Company B bonds are the same (including their default risk). The average inflation rate is expected to remain constant during the next 10 years. What is the default risk premium (DRP) associated with the bonds issued by Company A and Company B? A. 3.0% B. 0.3% C. 0.6% D. 3.2% E. 2.5%
Organizational buyers
A. rely on many sources of information, in addition to salespeople, when making purchase decisions. B. may use vendor analysis to make certain that all relevant areas of a purchase decision have been considered. C. tend to be more rational-and less emotional-in their buying decisions than final consumers. D. will likely search for little additional information if the purchase is unimportant. E. All these answers are correct.