Answer the following statements true (T) or false (F)
1. Torsten had total assets of $149,501,000, net income of $6,242,000, and net sales of
$209,203,000. Its profit margin was 2.98%.
2. A contra account is an account linked with another account; it is added to that account to show the proper amount for the item recorded in the associated account.
3. If a company reporting on a calendar year basis, paid $18,000 cash on January 1 for one year of rent in advance (lease beginning January 1), and adjusting entries are made at the end of each month, the balance remaining in Prepaid Rent on December 1 should be $1,500.
4. Accumulated depreciation is shown on the balance sheet as a subtraction from the cost of its related asset.
5. A salary owed to employees is an example of an accrued expense.
1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. TRUE
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A business objective should include a specific time frame for achieving the objective
Indicate whether the statement is true or false
The calculation of annual net cash flow from a particular investment project should include all of the following except:
A. Depreciation expense. B. Income taxes. C. Cost of products generated by the investment. D. Revenues generated by the investment. E. General and administrative expenses.
Answer the following statement(s) true (T) or false (F)
1. Collective bargaining refers to the process whereby representatives of the union and management meet to attempt to work out a contract. 2. Only management is required to bargain in good faith. This requirement is enforced by the NLRB. 3. The average union-management contract is good for one year. 4. The task of administering the contract is a joint labor and management obligation. 5. A doctrinaire firm is a nonunion organization that develops policies that mimic what unions have won in similar organizations.
What is the most important difference when a business uses Chapter 11 rather than Chapter 7 in
a bankruptcy? A) In Chapter 11, there is never a trustee, whereas in Chapter 7 there is always a trustee. B) In Chapter 11, petitions must be voluntary, whereas Chapter 7 petitions can be either voluntary or involuntary. C) In Chapter 11, all creditors are assured of receiving some payment, whereas in Chapter 7 some creditors may receive nothing. D) In Chapter 11, the business survives, whereas in Chapter 7 the business does not survive.