If one company owns more than 50% of the common stock of another company

A) the cost method should be used to account for the investment.
B) a partnership exists.
C) a parent-subsidiary relationship exists.
D) the company whose stock is owned must be liquidated.

The long run is a period of more than one year.

The importance of the terms FOB and FAS in contracts for the sale of goods is that they obligate the buyer to pay immediately upon delivery of the goods.

A dressmaking company
A)Service business
B)Manufacturing business
C)Retail business

A company's history indicates that 20% of its sales are for cash and the remaining 80% are on credit. Collections on credit sales are 30% in the month of the sale and 70% the following month. Projected sales for January, February, and March are $75,000, $92,000 and $60,000, respectively. The March expected cash receipts are $77,920.

One of the potential negative side-effects of pay in the form of sales commissions is:

A) a greater incentive for salespeople to engage in unethical or fraudulent sales practices that may eventually cause legal problems for the firm.
B) increased volatility of sales revenue for the firm.
C) the potential that pay levels may get so high that they will increase a firm's marginal wage cost more than its marginal revenue product.
D) an increased likelihood of shirking by workers.