Which of the following would be an example of the "precautionary motive" for a firm holding cash
balances?
A) purchase fixed assets B) anticipating a strike
C) make dividend payments D) purchase of inventory
B
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The Fixed Asset System performs all of the following except
a. determines the need for new assets b. maintains depreciation records c. records retirement and disposal of assets d. tracks the physical location of fixed assets
Doug Riley is the only accountant employed at Carmen Enterprises. When asked by the company president if the financial statements had been prepared yet, Doug answered that he had completed all of his work except the preparation of the statements. He
added that the net income that would appear on the current income statement would be $392,180. Identify the two instances where Doug would have determined the net income before he actually prepared the financial statements.
Managers utilize spreadsheets to conduct their own analyses in management science studies
Indicate whether this statement is true or false.
Financing decisions deal with the left-hand side of the firm's balance sheet
Indicate whether the statement is true or false