Which of the following statements about installment notes is correct?
A. With each subsequent payment on an installment note, the amount of the principal paid remains unchanged.
B. With each subsequent payment on an installment note, the amount of the principal paid decreases.
C. With each subsequent payment on an installment note, the amount of interest expense increases.
D. With each subsequent payment on an installment note, the amount of interest expense decreases.
Answer: D
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It is possible for a company to grow faster than its sustainable growth rate.
A. True B. False
When closing entries are made:
A. All asset accounts are closed but liability accounts are not closed. B. All balance sheet accounts are closed. C. All permanent accounts are closed but temporary accounts are not closed. D. All temporary accounts are closed but permanent accounts are not closed. E. All ledger accounts are closed to start the new accounting period.
Senate Inc. is considering two alternative methods for producing playing cards. Method 1 involves using a machine with a fixed cost (mainly depreciation) of $17,000 and variable costs of $1.00 per deck of cards. Method 2 would use a less expensive machine with a fixed cost of only $5,000, but it would require a variable cost of $1.50 per deck. The sales price per deck would be the same under each method. At what unit output level would the two methods provide the same operating income (EBIT)?
A. 24,960 B. 28,080 C. 24,000 D. 26,880 E. 28,320
In LANs, ________ typically is for ________
A) optical fiber, access lines B) UTP, access lines C) UTP, trunk lines D) none of the above