When personal property is used as collateral to back up a loan, the note created is a:

a. balloon note b. fixed note
c. collateral note d. property note e. personal note


c

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Which of the following concepts is important to accrual accounting?

A) Time period, because accrual accounting divides earnings into time periods. B) Market basis, because inflation is a big factor in the environment. C) Cash basis, because if cash is not received, revenue is not accrued. D) Entity concept, because personal transactions must be separated from business transactions.

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Tools and techniques used in quality control include

A) process maps. B) control charts. C) statistical sampling. D) all of the above.

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Decision variables are often used in formulas that show results.

Answer the following statement true (T) or false (F)

Business

On October 1, 20X3, Pole Corporation paid $450,000 for all of Stick Company's outstanding common stock. On that date, the book values and fair values of Stick's recorded assets and liabilities were as follows: Book ValueFair ValueCash and Receivables$75,000  $75,000  Inventory 155,000   160,000  Buildings and Equipment (net) 260,000   320,000  Liabilities (150,000)  (150,000) Net Assets$340,000  $405,000  Based on the preceding information, the differential implicit in this acquisition is

A. $0. B. $65,000. C. $45,000. D. $110,000.

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