A capital investment with an internal rate of return equal to or greater than the required rate of return is considered to be an acceptable investment.
Answer the following statement true (T) or false (F)
True
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The proper journal entry to purchase a computer costing $975 on account to be utilized within the business wouldbe
a. Office Supplies Accounts Payable 975 975 b. Office Equipment Accounts Receivable 975 975 c. Office Equipment Accounts Payable 975 975 d. Office Supplies Accounts Receivable 975 975
To qualify as "cash equivalents," the investment must be
a. readily convertible to a known amount of cash. b. convertible to cash within a one-year period of time. c. convertible to cash without a significant loss of value. d. convertible to cash within a five-year period of time.
Falkner Company is designing a portable DVD player aimed at families traveling with young children. The company believes that the product can be sold for $140; and it requires a 20% profit on new products. What is the target cost of the portable DVD player?
A) $140 B) $28 C) $175 D) $112 E) $168
Which one of the following is not a characteristic generally evaluated in ratio analysis?
A) liquidity. B) profitability. C) marketability. D) leverage.