Which of the following describes working capital?

A. Total debt minus stockholders' equity

B. Current assets minus current liabilities

C. Cost of goods sold divided by average merchandise inventory

D. Current assets minus merchandise inventory

Codes that are too detailed encourage employees to substitute rules for judgment. a. true b. false

Assume that Sallisaw Sideboards, Inc. had a retained earnings balance of $10,000 on April 1, and that the company had the following transactions during April. 1. Issued common stock for cash, $5,000. 2.

Timber Manufacturing uses the perpetual inventory system and purchased $6,000 of merchandise inventory on account. The seller prepays $300 in freight charges which were added to Timber Manufacturing's invoice.

Your father is about to retire, and he wants to buy an annuity that will provide him with $91,000 of income a year for 25 years, with the first payment coming immediately. The going rate on such annuities is 5.15%.

Suppose a foreign investor who holds tax-exempt Eurobonds paying 10.50% is considering investing in an equivalent-risk domestic bond in a country with a 28% withholding tax on interest paid to foreigners. If 10.

Long-lived assets are: a) non-operating assets expected to yield their economic benefits (or service potential) over a period longer than one year.

An airline company is interested in the opinions of their frequent flyer customers about their proposed new routes. Specifically, they want to know what proportion of them plan to use one of their new hubs in the next 10 months.

Taylor Bank lends Guarantee Company $92,811 on January 1. Guarantee Company signs a $92,811, 12%, nine-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is

Why is it important to know the interest rate on your credit card? a) The higher the interest rate, the more money you will be paying back b) The higher the interest rate, the less money you will be paying back c) The lower the interest rate, the

It is appropriate to use the fixed assets turnover ratio to appraise firms' effectiveness in managing their fixed assets if and only all the firms being compared have the same proportion of fixed assets to total assets. a) trueb) false