Which of the following questions is more likely to be asked by the firm's financial lenders as opposed to the firm's managers or potential investors?
A) How should we finance firm improvements and investments?
B) Should we continue to lend money to this firm?
C) Should we buy equity in this firm?
D) What are the accounts receivable policies for the firm?
B
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Tasks that investment bankers perform when acting as underwriters to sell securities to the public include
A) pricing the security. B) preparing the filings required by the Securities and Exchange Commission. C) arranging for the security to be rated. D) all of the above. E) only A and B of the above.
A county government sold two of its emergency vehicles for a total of $35,000 . The vehicles had a collective net book value of $46,000 (total original cost = $150,000; accumulated depreciation = $104,000)
The entry that would be made in the General Fund at the time of the transaction would be dr cr a. Cash $ 35,000 Capital Contribution $ 35,000 b. Cash $ 35,000 Other Financing Sources – Sale of Capital Assets $ 35,000 c. Cash $ 35,000 Accumulated Depreciation 104,000 Loss on Sale of Capital Assets 11,000 Capital Assets – Vehicles $150,000 d. Cash $ 35,000 Loss on Sale of Capital Assets 11,000 Other Financing Sources – Sale of Capital Assets $ 46,000 e. An entry is not necessary in the General Fund as this transaction only affects the General Capital Assets accounts.