When a Firm Has No Debt, Then Such a Firm

question 75

Multiple Choice

When a firm has no debt, then such a firm is known as
I.an unlevered firm;
II.a levered firm;
III.an all-equity firm

• A)I only
• B)II only
• C)III only
• D)I and III only

Identify and apply adjusting entries for depreciation.

Recognize and adjust entries for supplies and inventory.

Record and adjust entries for prepaid expenses.

Manage and adjust entries for accrued expenses, including salaries and wages.

---

Definitions:

Necessary Funds

Necessary funds refer to the essential money required to finance an operation, activity, or to cover expenses.

New Contract

An agreement created to establish or modify legal obligations between parties that may replace or supplement a previous contract.

Local Transport

Transportation services operating within a particular region or city, typically involving buses, trams, and local trains.

Delivery Van

A vehicle used for transporting goods, often belonging to companies offering delivery services of products.