Assume the current ratio is 3 to 1 . Estimating the warranties expense on the period's sales would cause the current ratio to
a. increase
b. decrease
c. be unchanged since the effects offset one another
d. be unchanged since it has no effect on any current accounts
b
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A larger unit volume allows for production and purchasing economies that lower the per-unit manufacturing cost of a product, thereby creating a scope effect
Indicate whether the statement is true or false
Which of the following is an advantage of the corporate form of business?
A) less degree of government regulation B) limited liability of stockholders C) separation of ownership and management D) low start-up costs
Which of the following is NOT a reason for which a company may purchase treasury stock?
A) to avoid a takeover by an outside party by increasing the number of outstanding shares that have voting rights B) to increase net assets by buying low and selling high C) to support the company's stock price D) to reward valued employees with stock
Notes Receivable and Accounts Receivable can also be called trade receivables
Indicate whether the statement is true or false