Becker's Bookstore shipped merchandise FOB destination to a customer. If the transportation costs are paid in cash, which of the following choices reflects how this transaction will affect the company's financial statements? Assets = Liab. + Equity Rev. − Exp. = Net Inc. Cash Flow
A. − = NA + − NA − + = − − OA
B. − = NA + − NA − + = − NA
C. +/− = NA + NA + − NA = + − OA
D. − = NA + − − − NA = − − OA

a. Option A
b. Option B
c. Option C
d. Option D

Norton manufacturing expects to produce 2,900 units in january and 3,600 units in february. norton budgets $20 per unit for direct materials. indirect materials are insignificant and not considered for budgeting purposes. the balance in the raw materials inventory account (all direct materials) on january 1 is $38,650. norton desires the ending balance in raw materials inventory to be 10% of the next month's direct materials needed for production. desired ending balance for february is $51,100. what is the cost of budgeted purchases of direct materials needed for january? $58,000 $65,200 $26,550 $25,150

Security a has a higher standard deviation of returns than security b. we would expect that: (i) security a would have a risk premium equal to security b. (ii) the likely range of returns for security a in any given year would be higher than the likely range of returns for security b. (iii) the sharpe ratio of a will be higher than the sharpe ratio of b. (a) i only (b) i and ii only (c) ii and iii only (d) i, ii and iii

What is a potential negative effect of an expansionary policy? decreased borrowing increased interest rates increased inflation decreased available credit