The major real-world benefit of debt is that interest payments are:
A) made after tax considerations.
B) a tax-deductible expense.
C) always less than 10% of the firm's profit.
D) smaller than the dividend payments.
B
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Rudy Rivers has withdrawn $750 from Rivers Computer Makeover Company's cash account to deposit in his personal account. How does this transaction affect Rivers Computer Makeover Company's accounting equation?
A. Increase Assets (accounts receivable) and decrease Assets (cash) B. Decrease Assets (cash) and decrease Owner's Equity (Owner's Withdrawal) C. Decrease Assets (cash) and decrease liabilities (account payable) D. Increase Assets (cash) and decrease Owner's Equity (Owner's Withdrawal)
When purchasing a home you first should consult an attorney
A) before signing a purchase agreement. B) after signing a purchase agreement, but before closing on the purchase. C) only after the title search is complete. D) In most cases there is no need to consult an attorney when purchasing a typical single family dwelling unit.