Which of the following is true of long-term funds?
A) They provide an easy way to reduce financing costs because they are relatively cheaper than short-term funds.
B) They are a type of investment fund which invests in money market investments of high quality and low risk.
C) They are the sources that supply the financing necessary to support a firm's capital budgeting activities.
D) They are the funds available to a business on the basis of inventory held and require detailed inventory tracking.
C
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On April 30, Victoria Secreto sold 1,000 shares of her Limited, Inc.'s common stock to Claire Jewels for $8,000. The stock cost Victoria $5,000. Limited, Inc.'s accounting equation ______.
a. is not affected b/c the corp. is separate from its owners b. will show a decrease in total assets and total shareholders' equity c. will show an increase in total assets and total shareholders' equity d. will show an increase in Retained Earnings e. is not affected b/c of the cost principle
According to equity theory, employees compare their inputs and outcomes to those of individuals in similar jobs to determine if they are being treated fairly.
a. true b. false