Which of the following items is classified as part of 'operating activities' in the statement of cash flows?

A) Bad debts expense.
B) Depreciation of non-current assets.
C) Proceeds from the sale of non-current assets.
D) Payments to suppliers for the purchase of goods.

If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest semiannually would sell at an amount

A) less than face value
B) equal to the face value
C) greater than face value
D) that cannot be determined

Corporations are considered to be legal persons.

A producer's minimum acceptable price for a particular unit of a good:

A) is the same for all units of the good.
B) will,for most units produced,equal the maximum that consumers are willing to pay for the good.
C) equals the marginal cost of producing that particular unit.
D) must cover the wages,rent,and interest payments necessary to produce the good but need not include profit.

The CEO of a firm just learned that a small, but highly progressive, competitor is for sale. This is an unexpected opportunity and one that the CEO would like to pursue immediately. The motive behind holding cash for such an event is called the ____ motive.

A) Transaction.
B) Speculative.
C) Reserve.
D) Precautionary.
E) Concentration.

Which statement is true?

A) The federal budget deficit reached a peak in 1992 and has been declining since then.
B) The federal budget deficit in fiscal year 1997 was at a record high.
C) Because we ran federal budget surpluses since 1998,the national debt is falling.
D) The federal government ran budget surpluses from 1998 to 2001,but returned to deficits since 2002.