Answer the following statement(s) true (T) or false (F)
1. Pledging is the use of accounts receivables as collateral for a loan.
2. Obtaining a line of credit from the bank guarantees that the loan will be available when needed.
3. Factoring involves selling accounts receivable at less than their face value in return for cash.
4. Factoring is one of the best, and least expensive, methods of obtaining short-term debt capital.
5. Floor planning is being used more often in recent years in industries such as automobiles and major appliances.
1. TRUE
2. FALSE
3. TRUE
4. FALSE
5. FALSE
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All of the following are external events (transactions) except for
a. a department store recognizing losses from shoplifting. b. a department store running ads in a local newspaper. c. a department store purchasing merchandise from a clothing manufacturer. d. a department store selling clothing to customers on credit.
Answer the following statements true (T) or false (F)
1) A static budget is prepared for only one level of sales volume. 2) A favorable variance reflects a decrease in operating income. 3) A variance is the difference between an actual amount and the budgeted amount. 4) A static budget presents financial data at multiple levels of sales volume. 7) A flexible budget summarizes revenues and costs for various levels of sales volume within a relevant range.
Turnover is calculated as follows:
A) operating income/average operating assets B) average operating assets/operating income C) (beginning operating assets + ending operating assets)/2 D) sales/average operating assets E) operating income/sales
A state party includes the state itself, its agencies, and its subdivisions
Indicate whether the statement is true or false