responsibility for any uncollected receivables.
C. Cross Town Bank accepts full responsibility for the collection of the accounts
receivables and, in exchange, immediately pays HPH a discounted value for its
receivables.
D. Cross Town Bank accepts full responsibility for collecting the accounts receivables
and pays HPH a discounted price for the accounts collected after the normal collection
period has elapsed.
E. HPH receives the full amount of its receivables upon assignment but must reimburse
Cross Town Bank for any uncollected account.
At the optimal order quantity size, the:
A. total cost of holding inventory is fully offset by the restocking costs.
B. carrying costs are equal to zero.
C. restocking costs are equal to zero.
D. total costs equal the carrying costs.
E. carrying costs equal the restocking costs.
Which one of the following best illustrates erosion as it relates to a hot dog stand
located on the beach?
A. providing both ketchup and mustard for its customer's use
B. repairing the roof of the hot dog stand because of water damage
C. selling fewer hot dogs because hamburgers were added to the menu
D. offering French fries but not onion rings
E. losing sales due to bad weather
Val's Marina Supply has 3,500 shares of stock outstanding with a par value of $1.00 per
share and a market value of $19 per share. The balance sheet shows $3,500 in the
common stock account, $24,000 in the capital in excess of par account, and $31,400 in
the retained earnings account. The firm just announced a 100 percent stock dividend.
