A company has assets of $350,000 and total liabilities of $200,000. Its debt-to-equity ratio is 0.6.
Answer the following statement true (T) or false (F)
False
If total assets and total liabilities are $350,000 and $200,000, respectively, stockholders' equity must be $150,000. Thus, the debt-to-equity ratio is $200,000/$150,000 or 1.3.
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The Soap Manufacturing Company has three employees who work in the warehouse. All of the warehouse workers are authorized to order inventory when it falls below the reorder level. The workers complete a purchase order and mail it to the supplier of
their choice. The inventory is delivered directly to the warehouse. The workers send a memo to accounts payable reporting the receipt of inventory. Accounts payable compares the warehouse memo to the supplier's invoice. Accounts payable prepares a check which the treasurer signs. Describe at least five needed internal control improvements.
Which of the following is an inventory processing system?
a. Perpetual b. Last-in, first-out c. Lower-of-cost-or-market d. Average-cost
A $200 petty cash fund has cash of $20 and valid receipts of $164. The entry to replenish the fund would be:
A) Cash 184 Petty Cash 184 B) Cash Short or Over 16 Petty Cash 16 C) Various Expenses 164Cash Short or Over 16Cash 180 D) Petty Cash 164 Cash 164
Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon. Once Sherry starts running the marathon, Alan ________
A) can revoke the contract as informal verbal agreements are not binding B) cannot revoke the contract C) can reduce the money on offer D) can only increase the money on offer