If Decker Had a Financing Deficit, It Could Remedy the Situation

question 24

Multiple Choice

If Decker had a financing deficit, it could remedy the situation by

• A) buying back common stock
• B) paying a special dividend
• C) paying down its long-term debt
• D) borrowing on its line of credit
• E) borrowing from retained earnings

---

Definitions:

Number Of Employees

The total count of individuals employed by a company or organization, either full-time or part-time.

Step-down Method

A method used in cost accounting to allocate service department costs to producing departments, considering inter-departmental services.

Step-down Method

An accounting method used for allocating indirect costs to different departments based on a hierarchy where the first allocation base is the costliest department.

Personnel Department

The division of a business that is focused on activities relating to employees, such as hiring, training, and benefits administration.