A company that uses the perpetual inventory system sold goods for $3,500 to a customer on account. The company had purchased the inventory for $900. Which of the following journal entries correctly records the cost of goods sold?
A)
Cost of Goods Sold 900
Sales Revenue 900
B)
Merchandise Inventory 900
Cost of Goods Sold 900
C)
Cost of Goods Sold 900
Merchandise Inventory 900
D)
Accounts Receivable 900
Sales Revenue 900
C
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A customer returned a textbook to a bookstore because she decided to drop the class after a few weeks. The sales clerk refunded the customer's money immediately because the store had a "no questions asked" refund policy. Which of the following service gaps was reduced because of the clearly defined guideline?
A. Delivery gap B. Communication gap C. Knowledge gap D. Research gap E. Procurement gap
Which of the following is NOT an act of vandalism?
a. deleting a customer data file b. pouring hot coffee on a company keyboard c. stealing company data lists d. throwing a computer monitor
If funding is available to purchase additional resources, then a decision maker must recommend that the company invest in resources represented by:
a. A binding constraint. b. A non-binding constraint. c. A non-negativity constraint. d. None of the above
Last year Jandik Corp. had $295,000 of assets (which is equal to its total invested capital), $18,750 of net income, and a debt-to-total-capital ratio of 37%. Now suppose the new CFO convinces the president to increase the debt-to-total-capital ratio to 48%. Sales, total assets and total invested capital will not be affected, but interest expenses would increase. However, the CFO believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged. By how much would the change in the capital structure improve the ROE? Do not round your intermediate calculations.
A. 2.60% B. 2.37% C. 2.50% D. 2.13% E. 1.64%