When a sale occurs under a perpetual inventory system,

A) a decrease in cost of goods sold is recorded.
B) a increase in inventory is recorded.
C) a decrease in accounts receivable is recorded.
D) a decrease in quantity is recorded.

The gross profit method is based on the assumption that the rate of gross profit remains constant from one year to the next.

Under a capital lease the lease/asset is reported on the balance sheet under plant assets.

SIPC ensures investors against failure of a brokerage firm up to a limit of ________.

A) $100,000
B) $250,000
C) $500,000
D) $1,000,000

The velocity of circulation,V,is equal to

A) PQ.
B) MQ.
C) PQ/M.
D) M/PQ.
E) Q.

Both fluctuating exchange rates and deferred payment terms are necessary for foreign exchange risk to exist.