In the Application,which of the Following Increased the Incentive to Buy

question 90

Multiple Choice

In the Application,which of the following increased the incentive to buy hybrid vehicles?

• A)Purchases of hybrid vehicles qualified for a $3400 subsidy from the federal government.
• B)Oil prices decreased.
• C)Hybrid vehicles were more expensive than regular vehicles.
• D)Hybrid vehicles had similar emissions as the non-hybrid vehicles.

Understand the importance of the minimum required rate of return in financial decision-making.

Calculate and interpret the turnover ratio.

Understand the benefits of decentralization on managerial performance and motivation.

Understand the concept of return on investment (ROI) and its calculation.

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Definitions:

Factoring

A financial transaction where a business sells its accounts receivable to a third party (factor) at a discount to get immediate cash.

Nontrade Receivables

Amounts owed to a business that are not related to the sale of goods or services, such as tax refunds, advances to employees, or insurance claims.

Company Officers

Executives appointed by the board of directors responsible for managing the day-to-day operations and making major corporate decisions.

Direct Write-Off Method

The method of accounting for uncollectible receivables that recognizes an expense only when an account is determined to be worthless.