When the staff accountant enters a correct customer number, the data entry screen displays the customer name and address. This is an example of
A) prompting.
B) preformatting.
C) closed-loop verification.
D) error checking.
Answer: C
Business
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The purpose of the restrictive debt covenant that requires that subsequent borrowing be subordinated to the original loan is to ________
A) maintain a minimum level of liquidity B) limit the amount of fixed-payment obligations C) ensure a long-run cash shortage does not cause an inability to meet current obligations D) protect the original lender in the priority of claims during liquidation
Business
Financial managers evaluating decision alternatives or potential actions must consider ________
A) only risk B) only return C) either risk or return D) risk, return, and the impact on share price
Business