Which of the following is true regarding the use of funds generated within the firm?
A. When finances are tight, companies should look for strategy alternatives that help get a better return on money already invested.
B. A company with a product that has significant growth potential should invest the earnings from that product to salvage declining products.
C. Indirect distribution usually requires more investment capital for a producer than does direct distribution.
D. Reinvesting cash generated from operations is usually more expensive than borrowing money.
E. All these answers are correct.
Answer: A
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In a periodic inventory system, the cost of purchases is recognized as
a. an increase in an asset account. b. an increase in the inventory account. c. the only part of the calculation of cost of goods sold. d. an integral part of the calculation of cost of goods sold.
The use of customer statements as a control device will be effective only if the employees responsible for the custody of cash received through the mail, for record keeping, and for authorization of adjustments to customers' accounts are not allowed to prepare and mail statements to customers
a. True b. False Indicate whether the statement is true or false
A visual printed message most often acts as what?
A) A replacement for text B) Supporting material in printed documents C) A guide to printed reports D) A replacement for interactive digital components E) A supplement to interactive digital components
A corporation originally issued $13 par value common stock for $15 per share. Which of the following is included in the entry to record the purchase of 300 shares of treasury stock for $11 per share?
A) Treasury Stock—Common is debited for $3300. B) Treasury Stock—Common is credited for $45. C) Retained Earnings is debited for $1650. D) Treasury Stock—Common is debited for $1650.