A corporation reports the following year-end balance sheet data. The company's acid-test ratio equals: Cash$49,000? Current liabilities$84,000? Accounts receivable 64,000? Long-term liabilities 20,000? Inventory 69,000? Common stock 109,000? Equipment 154,000? Retained earnings 123,000? Total assets$336,000? Total liabilities and equity$336,000?
A. 2.17
B. 0.45
C. 0.31
D. 1.35
E. 0.69
Answer: D
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The text lists five psychological factors that can influence purchase decisions. List and give an example of each.
What will be an ideal response?
For product costs associated with a particular product to be reported on the income statement:
A. The company must expect to sell the product during the next twelve months. B. The product must still be in Work in Process Inventory. C. The product may be in any of the manufacturer's inventory accounts. D. The product must be transferred to Finished Goods Inventory. E. The product must be sold.
Wayne Enterprises Inc pays a regular annual dividend on its common shares which is expected to grow annually in perpetuity at the rate of 3%. Today is Dec 31 and Wayne pays its dividend on January 1 (tomorrow). Last year, the dividend was $0
75 per share. Ignoring settlement, taxes and other institutional issues, what is a fair price for the stock today if investors expect an annual return of 9%? A) $12.88 B) $13.26 C) $13.41 D) $13.63 E) $14.03
Answer the following statements true (T) or false (F)
1. Warranty expense must be estimated and matched to revenues. 2. Estimated liabilities are generally classified as long-term liabilities. 3. Warranty expense is always recorded in the period that the warranty claims are paid. 4. According to the matching principle, warranty expense must always be recorded in the same period as the related revenue. 5. Evergreen Renovations paid $400 to settle warranty claims last month. The journal entry to record this would have included a debit to Estimated Refund Liability.