Answer the following statements true (T) or false (F)
1. If a company purchases equipment paying cash, the journal entry to record this transaction
will include a debit to Cash.
2. If a company provides services to a customer on credit, the company providing the service
should credit Accounts Receivable.
3. When a company bills a customer for $700 for services rendered, the journal entry to record
this transaction will include a $700 debit to Services Revenue.
4. The debt ratio helps to assess the risk a company has of failing to pay its debts and is helpful to both its owners and creditors.
5. The higher a company's debt ratio, the lower the risk of a company not being able to meet its obligations.
1. FALSE
2. FALSE
3. FALSE
4. TRUE
5. FALSE
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The idea that decision makers find the notion of an actual loss more painful than giving up the possibility of a gain is called
A. a heuristic. B. an availability bias. C. a representativeness bias. D. the prospect theory. E. satisficing.
Accounts receivable confirmations usually provide strong evidence about which of the following?
a. The existence of receivables. b. The completeness of receivables. c. The presentation and disclosure of receivables. d. The obligations of receivables.
According to F. Leigh Branham of Keeping People Inc., the most effective employment branding
A) can only be accomplished by using conventional advertising media. B) has been developed by executive head hunters. C) occurs through word-of-mouth. D) can be found in small, privately held companies. E) is the result of high-cost public relations campaigns.
Fact Pattern 42-1AFresh Fruits & Veggies, Inc., wants to make an initial public offering of securities. Fresh believes that it qualifies for an exemption under Regulation A from the full registration requirement of the federal Securities Act of 1933.Refer to Fact Pattern 42-1A. Fresh decides to sell its new securities via the Internet. This offering
A. will avoid the payment of commissions to brokers or underwriters. B. is an investment scam. C. is a Ponzi scheme. D. constitutes insider trading.