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  • 2022-06-06
    A firm can create future income by temporarily increasing its bad debt allowance. ( )
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    举一反三

    • Translate the following special term into English.“银行对帐单” A: income statement B: intangible asset C: allowance for (bad debt) doubtful account D: bank reconciliation
    • If a firm has a debt to owners' equity ratio of .75 (or 75%) we can conclude that A: it has relied more on debt than equity to finance its operations. B: the firm is likely to have trouble paying its short-term debts when they come due. C: its total liabilities are less than its owners' equity. D: the firm has expenses that are exactly 75% of its gross profit.
    • Under the allowance method of accounting for uncollectible accounts receivable, no attempt is made to estimate the bad debt expense. ( )
    • In a leveraged buy out, a firm greatly increases its debt level by issuing junk bonds to finance the purchase of another firm’s stock.
    • A firm that shuts down temporarily has to pay A: its variable costs but not its fixed costs. B: its fixed costs but not its variable costs. C: both its variable costs and its fixed costs. D: neither its variable costs nor its fixed costs.

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