A ________ refers to a promise in which one person agrees to answer for the debts or duties of another person.

A. covenant
B. guaranty contract
C. recision
D. novation


Answer: B

Business

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A check drawn by a company for $360 in payment of a liability was recorded in the journal as $630 . This item would be included on the bank reconciliation as a(n)

a. addition to the balance per the company's records b. addition to the balance per the bank statement c. deduction from the balance per the bank statement d. deduction from the balance per the company's records

Business

The premium on bonds payable account would be classified as a(n)

a. current liability; b. adjunct-liability; c. contra-liability; d. noncurrent asset; e. contra-asset

Business

In preparing a first draft of a legal document, you should:

a. reread the directions. b. begin in a logical fashion. c. complete one section before moving on to another section. d. periodically go back and reread directions. e. All of the above

Business

You work for Whittenerg Inc., which is considering a new project whose data are shown below. What is the project's Year 1 cash flow?  Sales revenues, each year$67,000 Depreciation$8,000 Other operating costs$25,000 Interest expense$8,000 Tax rate35.0% ?

A. $33,110 B. $32,809 C. $30,100 D. $35,819 E. $27,692

Business