Ashton Bank knows that its customer,Juan,has died.One day after Juan's death,Ashton Bank was presented a check for clearing of $3,000.The check was written by Juan a week prior to his death to Bailey Enterprises.Discuss the legal rights of Bailey Enterprises.

____ is involved in the first step of managerial problem solving.

A) Escalation of commitment
B) Pinpointing the cause of the problem
C) Finding the best cost-benefit relationship
D) Identifying the problem
E) Selecting a solution

One test of a company's liquidity is the

A) debt ratio
B) acid-test ratio
C) return on stockholders' equity
D) price-earnings ratio

Which of the following is true regarding negotiable instruments in England?

A) Promissory notes can be negotiated between parties.
B) Checks can be negotiated between parties.
C) Bills of exchange can be negotiated between parties.
D) Promissory notes,checks,and bills of exchange can be negotiated between parties.
E) Promissory notes and checks can be negotiated between parties,but bills of exchange cannot.

Related to the Economics in Practice on page 318: A company selling iced tea discovers that as sugar is added to tea, customers' opinions of the taste of the tea rises for the first few grams of sugar and then drops. Even so, the company chooses not to add the amount sugar that would result in the best-tasting tea. Which of the following would explain why adding less sugar could be a wise decision?

A) The price of sugar added to tea is much less significant than the price of other ingredients, such as tea leaves.
B) Manufacturers of tea are required to clearly indicate the amount of sugar in their products.
C) Teas with less sugar are more likely to appeal to health-conscious consumers.
D) Many products in the cold drink market are sold with substitutes for sugar, such as high fructose corn syrup.

On March 1, the amount of Richard Cook's capital in Richard's Catering Company was $150,000. During March, he withdrew $31,000 from the business. The amounts of the various assets, liabilities, revenues, and expenses are as follows:​ $$\begin{array}{lr}\text{ Accounts payable }& \$10,250\\ \text{ Accounts receivable }& 45,950\\ \text{ Cash }& 23,840\\ \text{ Fees earned }& 64,950\\ \text{ Insurance expense }& 1,275\\ \text{ Land }& 85,400\\ \text{ Miscellaneous expense }& 1,210\\ \text{ Prepaid insurance }& 3,000\\ \text{ Rent expense }& 9,000\\ \text{ Salary expense }& 20,300\\ \text{ Supplies }& 900\\ \text{ Supplies expense }& 525\\ \text{ Utilities expense }& 2,800\end{array}$$ Present, in good form,
(a) an income statement for March,
(b) a statement of owner's equity for March, and
(c) a balance sheet as of March 31.