Author Question: Plimpton Sales presents income statements for the first three months of this year. Revenues are ... (Read 48 times)

bobbie

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  • Posts: 592
Plimpton Sales presents income statements for the first three months of this year.
 
  Revenues are
  1,000,000 in January, 1,200,000 in February, and 1,400,000 in March, while expenses total
  800,000 in January, 900,000 February, and 1,000,000 in March. Despite the positive net income,
  the controller believes Plimpton Sales needs to arrange short-term financing of 300,000 to make
  payroll the next month. Which of the following statements is MOST correct?
  A) The controller must have made a mistake since the company's net income for the three
  months is 900,000.
  B) The company's accounts receivable balance has increased and the accounts payable balance
  has decreased over the past three months.
  C) The company's accounts receivable balance has decreased over the past three months.
  D) The company's accounts payable balance has increased over the past three months.

Question 2

In a well-diversified portfolio, the most relevant type of risk to a well-diversified investor is
 
  A) interest rate risk.
  B) unsystematic risk.
  C) market risk.
  D) exchange rate risk.
  E) firm-specific risk.



samiel-sayed

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  • Posts: 337
Answer to Question 1

B

Answer to Question 2

C



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