Match the descriptions below to the correct credit or shipping terms. Some terms may be used more than once. Others may not be used at all.
a. 2/10, n/30
b. 1/15, n/45
c. n/30
d. 3/10, n/60
e. FOB destination
f. FOB shipping point
______ 1. would result in a 200 discount for early payment of a 10,000 purchase
______ 2. shipping terms that would typically mean that the buyer has to pay the freight charges
______ 3. credit terms that allow the buyer a maximum of two months to pay the debt
______ 4. credit terms that do not allow a discount for early payment
______ 5. would result in a 150 discount for early payment of a 5,000 purchase
______ 6. credit terms that would set May 2 as the latest payment date to take a discount on an April 17 purchase
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Q. 2) In an information systems organization, all of the following functions might logically report to the data center manager except:
a. data control
b. computer operations
c. data librarian
d. quality assurance
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Q. 3) Maxine, Inc. bought a machine on January 1, 2012 for 48,000. The machine is expected to last for 8 years, after which it will be worthless. How much depreciation expense will Maxine show on its balance sheet at December 31, 2012?
A) 48,000
B) 8,000
C) 6,000
D) 0. Depreciation expense does not appear on the balance sheet.
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Q. 4) Since there is no maximum earnings on the Medicare component of the Social Security tax, the Medicare tax rate of 1.45 is applied to total earnings.
a. True
b. False
Indicate whether the statement is true or false
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Q. 5) Positive financial leverage occurs when a company ________.
A) has more current assets than current liabilities
B) has a current ratio greater than 1.0 to 1
C) earns more with the money it borrows than it has to pay to borrow that money
D) has a high debt-to-equity ratio
(
Q. 6) The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges.
a. True
b. False
Indicate whether the statement is true or false
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