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Classify the following events as mostly systematic or mostly unsystematic. Is the distinction clear inevery case? Provide detailed explanation. a. Short-term interest rates increase unexpectedly.b. The interest rate a company pays on its short-term debt borrowing is increased by its bank.c. Oil prices unexpectedly decline.d. A manufacturer loses a multimillion-dollar product liability suit.

Which of the following demonstrates that a company is managing its receivables well? a.The company has cash to pay its bills. b.The company is cash poor. c.The company is losing interest that could be earned by investing. d.The company has many short term loans with high interest.

A company accounts for possible bad debts using the allowance method. When an actual bad debt occurs, what effect does it have on the accounting equation? O Decreases asscts and decreases stockholders' equity. O Increases assets and increases stockholders' equity. O Decreases assets and decreases liabilities. O No effect on the accounting equation.

The Boeing Company, manufacturer of jet aircraft, is the defendant in numerous lawsuits claiming unfair trade practices. Boeing has strong incentives not to disclose these contingent liabilities. However, financial accounting standards require that companies report their contingent liabilities. Required: a. Why would a company prefer not to disclose its contingent liabilities? b. Describe how a bank could be harmed if a company seeking a loan did not disclose its contingent liabilities. c. What is the ethical tightrope that each company must walk when it reports its contingent liabilities?

The "mark to market" rule     (a) Created an unrealistic picture of the financial health of some banks.     (b) Required banks to recognize in their balance sheet decrease in value of assets as their price declined in the market, instead of waiting until the asset was sold.     (c) Caused the net worth of some banks to decline significantly and making it impossible for the banks to make loans.     (d) All the above.     (e) Only (b) and (c) are true.

One of the key reasons that businesses fail is due to improper capital planning and a general lack of working capital (aka liquidity).  It also happens to be one of the key reasons why people fail too.  In personal finance, we know that you should have 3 to 6 months’ worth of money set aside for emergencies, but what does it take to make sure that a business is properly liquid?

Check True if the statement is correct, otherwise False on the line before each number and state your reason. 1. Having an adequate working capital enables the business to maintain a good credit standing. 2. A business that has an insufficient or inadequate working capital can hardly replenish its inventories. 3. Compounding interest entails that the interest for the current period will also earn an interest in the succeeding period. 4. The process of computing the future value is the same when computing the present value of investment. 5. Personal saving, spending, and investing activities are interrelated.

2.  Which is a true statement? Federal law requires all businesses to offer credit to customers. A customer may claim dissatisfaction with a product as a means of refusing to make payments. A business has the legal right to harass a customer until a debt is paid. If a company is run correctly, it will not have to deal with uncollectibles.     3.  Why might a customer frequently ask for changes in the payment schedule? They are traveling a lot. Their pay day changes depending on their schedule. They are sick a lot. The customer may be having trouble making payments.

27.A company writes off as uncollectible an account receivable from a bankrupt customer.  The company has an adequate amount in its Allowance for Uncollectible Accounts.  What would be the effect of this transaction in the company's financial statements?     a. Operating expenses for the period will increase. b. Total current assets will decrease. c. Net profit for the period will not be affected. d. Net profit for the period will decrease.

Which of the following will increase a company's current liabilities? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. A company purchases a new truck with cash. A company receives cash from taking out a long-term loan. ? A company collects half of its accounts receivable balance. ? A company purchases inventory on credit. ? A company purchases new manufacturing equipment with cash.

Ceres Corporation made travel advances to the marketing team. Why are they considered nontrade receivables? The amounts are owed to the employees, not to the company. The amounts owed to the company did not result from selling goods or services. The amounts owed to the company are not from external parties. O The amounts owed will not cause a decrease in the Cash account.

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