Which of the following is the main reason behind the financial crisis of 2008?
A. There was a sharp decline in the growth rate of money supply.
B. There was a sharp increase in the quantity of exports from the U.S. to Asian countries.
C. Banks in the U.S. made subprime mortgage loans.
D. Banks had much higher requirements for borrowers to qualify for loans than normal.
Answer: C
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Cost minus accumulated depreciation equals ____________________
Fill in the blank(s) with correct word
Lubricants, coal, paper, and pencils are examples of ________
A) operating supplies B) capital items C) raw materials D) specialty products E) installations
When using the installment sales method,
a. total revenues and costs are recognized at the point of sale, but gross profit is deferred in proportion to the cash that is uncollected from the sale. b. gross profit is recognized only after the amount of cash collected exceeds the cost of the item sold. c. revenue, costs, and gross profit are recognized proportionally as the cash is received from the sale of product. d. gross profit is deferred until all cash is received, but revenues and costs are recognized in proportion to the cash collected from the sale.
Under a guaranty of __________, the guarantor's obligation to pay the lender is triggered automatically when the debtor fails to make a payment when due
a. security b. collection c. payment d. performance