Author Question: Plimpton Sales presents income statements for the first three months of this year. Revenues are ... (Read 58 times)

bobbie

  • Hero Member
  • *****
  • 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

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

B

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

For a complete list of videos, visit our video library