The voucher system of control:
A. Is a set of procedures and approvals designed to control cash receipts and the acceptance of liabilities.
B. Establishes procedures for verifying, approving, and recording liabilities for eventual cash payment.
C. Applies only when multiple purchases are made from the same supplier.
D. Establishes procedures for receiving checks for the sale of verified, approved, and recorded activities.
E. Is required in large companies but not beneficial for small to mid-sized companies.
Answer: B
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Scrubber, Inc presented the following information in a note to its financial statements for the year ending December 31, 2016: The company has a loan agreement with Mountain State Bank that states: 1 . The current ratio should remain at least 2.0 to 1 at all times. 2 . The debt-to-equity ratio should not exceed .7 to 1 at any time. 3 . The company must maintain $75,000 cash at all times. The
ratios at year-end are: current ratio, 2.3 to 1 and debt-to-equity ratio, .2 to 1 . The amount of cash on the bank statement is $75,400, but the cash account after the adjustments from the bank reconciliation has a balance of $74,900 . Has Scrubber violated its loan agreement? a. No b. Yes, the cash balance is less than $75,000. c. Yes, the current ratio is .3 or 30% larger than the agreement indicates. d. Yes, the cash balance is less than $75,000, and the debt-to-equity ratio is overstated.
Nuisance actions are used primarily as a way for plaintiffs to ________
A) stop pollution entirely B) recover damages for their losses caused by pollution C) present the true costs that the polluting behavior is imposing on the community D) convince the courts to use their authority to move the industries that cause pollution to an isolated location
Failure to warn about a product's dangers can make an otherwise safe product defective
Indicate whether the statement is true or false
Swim & Trim Fitness Corporation wants to formulate a plan under which it pays a portion of its debts and is discharged of the remainder while continuing in business. To accomplish this goal, Swim & Trim should file a petition in bankruptcy for relief through
A. a liquidation. B. a reorganization. C. a repayment plan. D. a family-farmer bankruptcy plan.