To maintain the balance sheet equality, it is necessary to report every event and transaction in a dual manner. If a transaction results in an increase in the left hand side of the balance sheet, dual transactions recording requires that which of the following must occur, to maintain the balance sheet equation?
a. decrease another asset
b. increase a liability
c. increase shareholders equity
d. all of the above will maintain the balance sheet equation
e. none of the above
D
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Using vertical analysis of the income statement, a company's net income as a percentage of net sales is 15%; therefore, the cost of goods sold as a percentage of sales must be 85%
Indicate whether the statement is true or false
Additional funds needed (AFN) will be negative if:?
A. ?assets that can be acquired only in large, discrete amounts are acquired. B. ?the plant and equipment of the firm is increased to achieve additional growth. C. ?the amount of internal financing expected is decreased because of an increase in operations of the firm. D. ?there are economies of scale in the use of many types of assets. E. ?the amount of internally generated funds is more than sufficient to support the forecasted increase in sales.
The orange exterior of Home Depot stores is an example of:
a. a patent b. a real mark c. a service mark d. a certification mark e. none of the other choices are correct
Business concepts are discovered during ________
A) behavioral modeling B) decision making C) domain analysis D) requirements gathering