An increase in an expense may be accompanied by a decrease in a liability.
Answer the following statement true (T) or false (F)
False
An increase in an expense, such as salaries expense, may be accompanied by an increase in a liability, such as salaries payable, but it may not be accompanied by a decrease in a liability.
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The 20 percent of U.S. households that have the highest incomes have more discretionary spending than other market segments.
Answer the following statement true (T) or false (F)
The third step in financial statement analysis is to assess the quality of the firm's financial statements. Which of the following is a question an analyst should ask when performing this step?
a. Are industry sales growing rapidly or slowly? b. Do earnings include revenues that appear mismatched with the business model employed by the firm? c. Does the industry include a large number of firms selling similar products? d. What is the company's degree of geographical diversification?
Charlie's Hotdog Stand Charlie's Hotdog Stand sells hotdogs for $2.50 each. The variable costs per hotdog are $.50. Charlie's fixed costs are currently $800 per month. Charlie is considering expanding his business to three hotdog stands which will increase fixed costs per month by $1,200. Refer to the Charlie's Hotdog Stand information above. If Charlie does expand his business to three stands,
how many additional hotdogs will need to be sold per month in order to break even? A) 1,000 hotdogs B) 600 hotdogs C) 200 hotdogs D) 480 hotdogs
It is important for many firms to identify their heavy users because of the rule that 20 percent of heavy users account for ________ percent of the total demand.
Fill in the blank(s) with the appropriate word(s).