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Indicate whether the statement is true or false


TRUE

Business

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Based on its income for the month, Reel Company estimates that federal income taxes for the month of May will be $11,000 . What is the effect of the adjustment on the financial statements?

a. Increase retained earnings b. Increase income taxes expense c. Increase net income d. Decrease income taxes payable

Business

Many analysts use ____________________ as a crude measure of a firm's ability to pay down debt

Fill in the blank(s) with correct word

Business

Assume that Corn Co sold 8,000 units of Product A and 2,000 units of Product B during the past year. The unit contribution margins for Products A and B are $30 and $60 respectively. Corn has fixed costs of $378,000. The break-even point in units is:

A) 8,000 units B) 6,300 units C) 12,600 units D) 10,500 units

Business

The use of teams by organizations is increasing because:

a. Organizations are getting larger. b. Employees want their jobs to be simplified. c. Jobs are becoming more complex and interdependent. d. Organizations are seeking stability. e. Organizations are becoming more hierarchical.

Business