Complete this equation: ________ - Liabilities = Net Worth
A) Income
B) Revenue
C) Profit
D) Assets
E) Cash
D) Assets
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One of the key components to making financial decisions is to ________
A) understand the timing and amount of dividends B) understand the timing and amount of cash flow C) understand the timing of EBIT D) understand the amount of net income
Jasmin, Shou-Yi, and Vanessa form an LLC, and each contributes $25,000 in capital. The LLC operates for a period of time, during which it borrows money from banks and purchases goods on credit from suppliers. After some time, the LLC experiences financial difficulties and goes out of business. If the LLC fails with $500,000 in debts, which of the following is an accurate statement regarding the liability of Jasmin, Shou-Yi, and Vanessa?
A. Each will lose her capital contribution of $25,000, but will not be personally liable for the rest of the unpaid debts of the LLC. B. Each will lose her capital contribution of $25,000, and will be personally liable for the rest of the unpaid debts of the LLC. C. Each will not be personally liable for the $500,000 in debts, and will be reimbursed for her $25,000 capital contribution. D. Each will not be personally liable for the $500,000 in debts, and a constructive trust for the entire $75,000 in capital contributions will be imposed so that Jasmin, Shou-Yi and Vanessa can form a new business venture.
Scholfield Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below:Activity Cost PoolActivity MeasureActivity RateSupporting assemblyDirect labor-hours (DLHs)$6.55per DLHProcessing batchesNumber of batches$138.20per batchProcessing ordersNumber of orders$52.60per orderServing customersNumber of customers$1,191.00per customerThe cost of serving customers, $1,191.00 per customer, is the cost of serving a customer for one year.Latif Corporation buys only one of the company's products which Scholfield Enterprises sells for $15.60 per unit. Last year Latif Corporation ordered a total of 1,100 units of this
product in 2 orders. To fill the orders, 7 batches were required. The direct materials cost is $7.85 per unit and the direct labor cost is $1.90 per unit. Each unit requires 0.10 DLHs.According to the ABC system, the total cost of the activity "Processing batches" for this customer this past year was closest to: A. $52.60 B. $967.40 C. $1,020.00 D. $138.20
Institutional advertising is primarily used to locate and recruit new employees.
Answer the following statement true (T) or false (F)