According to the agency theory, who are the principals?
A. Managers
B. Customers
C. Employees
D. Owners
E. Vendors
Answer: D
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Which of the following is not true about special journals?
a. A company does not have to use special journals; b. A sale of a company's used machinery on account should be recorded in the general journal; c. Only purchases made on account are recorded in the purchases journal; d. All transactions that involve liabilities should be made in the general journal; e. When a customer pays off the amount due, the company records that amount in the cash receipts journal.
Which of the following capital budgeting techniques may potentially ignore part of a project's relevant cash flows?
a. net present value b. internal rate of return c. payback period d. profitability index
The lack of conflict in a team can be a sign of a problem because:
a. Conflict encourages strong leadership. b. Members may be agreeing with each other just to avoid conflict. c. Conflict increases “defensive avoidance.” d. Conflict enhances a team’s communication network.
Which of the following is a similarity between a stock market and a labor market?
a. Both adopt a barter system to enable the exchange of products. b. Both have people who are unwilling to spend a large sum of money for products or services. c. Both have people with the necessary resources to buy desired products or services. d. Both deal with high-end, expensive products.