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Answer the following statement true (T) or false (F)
False
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Which of the following is not true of a corporation?
a. It may enter into binding legal contracts in its own name. b. It may sue and be sued. c. The acts of its owners bind the corporation. d. It may buy, own, and sell property.
Which of the following is true of a land contract?
A. If a buyer defaults, the seller does not have the right to declare a forfeiture. B. The title to property is conveyed if partial payment has been made. C. The trustee holds legal title to the property put up as security. D. The seller agrees to convey the title when the full price is paid.
The Income Summary account has a debit balance of $2,000 after the first two closing entries have been journalized and posted. The $2,000 represents the net loss of the business that will be closed into the Capital account
Indicate whether the statement is true or false
Which of the following statements is generally incorrect from an investor's perspective?
A. A 10% net margin is generally preferred over an 8% net margin. B. A 20-day average collection period for accounts receivable is generally preferred over a 30-day average collection period. C. A 1:1 current ratio is generally preferred over a 1.5:1 current ratio. D. A 5% dividend yield is generally preferred over a 3% dividend yield.