Contracts with bondholders, other lenders, and preferred shareholders often limit dividend payments and thereby compel the retention of earnings. Which of the following is/are true?
a. A bond contract may require that total liabilities not exceed the total amount of shareholders' equity.
b. A bond contract may require that firms retire debt "out of earnings.".
c. A bond contract's provisions may involves curtailing dividends so that the necessary debt service payments, plus any dividends, do not exceed the amount of earnings for the period.
d. Financial statement notes must disclose significant limitations on dividend declarations.
e. all of the above
E
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Incentives that can be used to encourage consumers to make online purchases include all of the following, except:
A) follow-up incentives B) financial incentives C) convenience incentives D) value-based incentives
Generally, most customers want the transactions to be quick; hence, they do not expect pleasantries such as "please" and "thank you."
Answer the following statement true (T) or false (F)
If you are involved in an affective conflict, you should ________
A) choose to avoid a confrontation and deny that the problem exists B) address the emotional issues before productively discussing the content of your work C) use accusatory rather than neutral language to resolve the conflict D) compete to win as a means of managing the conflict E) frame your comments negatively while expressing your point of view
The gain or loss from retirement of debt is reported under cash flows from operating activities on the statement of cash flows using the direct method.
Answer the following statement true (T) or false (F)