The use of debt financing creates financial leverage

In the procure-to-pay process, the negotiation of price and terms is followed by ________

A) settling the payment B) creating the customer record C) issuing the purchase order D) receiving the goods E) receiving the invoice

At January 1 . 2014, a company had a net valuation allowance account credit balance for investments in securities available-for-sale of $20,000 . At December 31 . 2014, the total cost of the relevant portfolio was $300,000, and total market value was $275,000 . The entry required on December 31 . 2014, would reflect a

a. $5,000 decrease in net income. b. $25,000 decrease in net income. c. credit of $5,000 to the valuation allowance account. d. debit of $25,000 to the unrealized loss account.