Which of the following statements is true regarding telephone interviews?
a. It makes the supervision of interviewers difficult.
b. It is time-consuming.
c. It makes certain questions seem more complex.
d. It transcends national borders.
e. It has high levels of participation.
Ans: c. It makes certain questions seem more complex.
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If the only information you are given about Ryan Corporation, a large public company in business for many years, is that it has a current ratio of 2.9, what could you infer from this?
A) It can meet the short-term obligations without any difficulty. B) You could determine that Ryan has a liquidity problem because Ryan's current ratio is greater than 2 which is the rule of thumb for the current ratio. C) Nothing, you would also need the current ratio's from the last few years of the S&P 500 Index. D) You could determine that Ryan has an activity problem because Ryan's current ratio is greater than 2 which is the rule of thumb for the current ratio.
Fenchurch Corp uses the direct write-off method to account for bad debts. What are the effects on the accounting equation of the entry to record the write-off of a customer's account balance?
a. Assets and liabilities decrease. b. Assets and owners' equity decrease. c. Owners' equity decrease and liabilities increase. d. No effect; assets increase and decrease by the same amount.