Which of the following is true of accrual basis accounting?
A) Expenses are recognized either when they are incurred or cash is paid.
B) Revenue is recognized when a customer pays cash.
C) Expenses are recognized when they are incurred.
D) Revenue is recognized when a customer pays cash or shows interest to purchase the product or service.
C
Business
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Use the following ratios for Crimson Industries Inc., to estimate the firm's ROE. Net profit margin = 8.62%, asset turnover = 1.68, return on assets = 14.48%, financial leverage = 1.35, debt to equity ratio = 35%
A) 2.10% B) 0.99% C) 5.07% D) 19.55%
Business
To use a leased line, the customer requires a(n) ________ at each site
A) switch B) router C) CSU/DSU D) modem
Business