A firm's capital expenditures may be limited due to externally imposed constraints. All but which of the following are external constraints?
A) The firm's loan agreements may contain restrictive constraints.
B) The firm may decide to place an upper limit on the amount of funds allocated to capital investment.
C) If the firm has a weak financial position, it may be too expensive to float a new bond issue.
D) There may be market-imposed difficulties such as a tight money policy on the part of the Federal Reserve System.
B
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Under the direct write-off method, which of the following is included in the entry to write off an uncollectible account?
A) a credit to the Allowance for Bad Debts B) a credit to the customer's Account Receivable C) a debit to Allowance for Uncollectible Accounts D) No entry is made to write off uncollectible accounts.
The future value of a $10,000 annuity deposited at 12 percent compounded annually for each of next 5 years is: (Round to the nearest whole dollar)
A) $36,050 B) $71,154 C) $40,376 D) $63,528