A promissory note states that the note is due one year from March 31, 2010 "with interest at the current rate." Is this instrument negotiable?


Yes. Payable "with interest at the current rate" still qualifies under Article 3 of the UCC as being paid at a fixed amount of money.

Business

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When a company declares a stock dividend, which of the following occurs?

a. A liability is created. b. Retained earnings is reduced. c. Stockholders' equity is decreased. d. The financing section of the statement of cash flows is decreased.

Business

Working capital measures

A) the excess of current assets over current liabilities-what is on hand to fund business operations. B) the ability to earn a satisfactory income. C) the amount of debt in the company. D) the profitability of the business.

Business

Companies that sell goods that have a high unit value tend to use the perpetual inventory system

Indicate whether the statement is true or false

Business

You have calculated, using the high-low method, a variable cost per machine hour of $0.80 for your production power costs. Power costs at 6,000 machine hours are $5,400; at 9,000 machine hours, they are $7,800. What are the total fixed costs that you would use to estimate production power costs for your company at any level within your relevant range?

A) $600 B) $6,400 C) $2,400 D) $4,800

Business