Digital Corporation The following data concern Digital Corporation for 2012. Credit sales during the year $2,400,000 Accounts receivable--December 31, 2012 410,000 Allowance for bad debts--December 31, 2012 55,000 Bad debt expense for the year 35,000 Refer to the information provided for Digital Corporation. What are the effects on the accounting equation when Digital writes off a bad debt under
the allowance method?
A) Assets decrease and equity increase
B) Assets and equity decrease
C) Assets increase and equity decreases
D) No effect on overall assets or equity
D
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The primary purpose of a stock split is to
A) increase paid-in capital B) reduce the market price of the stock per share C) increase the market price of the stock per share D) increase retained earnings
Worcester Corporation has a P/E ratio of 15. Natick Corporation is in the same industry as Worcester, but has a P/E ratio of 20. Possible interpretations of this discrepancy include
A) Worcester Corporation is overpriced. B) Natick Corporation has higher earnings per share. C) Investors expect Natick to grow faster than Worcester. D) Natick's stock price is higher than Worcester's.
A heading is used on the second page of a letter but not on the second page of a memo
Indicate whether the statement is true or false
In project time management, the next step after sequencing activities is to define these activities
a. True b. False Indicate whether the statement is true or false