The matching principle, as applied to bad debts, requires:

Mueller Company purchased $2,200 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $400 worth of merchandise. On July 12, it paid the full amount due. Assuming Mueller uses a perpetual inventory system, the correct journal entry to record the payment on July 12 is:

Regarding warranties, companies should:

Preferred stock that gives its owners the right to be paid both the current and all prior periods’ unpaid dividends before any dividend is paid to common stockholders is called:

When preparing a statement of cash flows using the indirect method, which of the following is correct?

Preferred stock that gives its owners the right to be paid both the current and all prior periods’ unpaid dividends before any dividend is paid to common stockholders is called:

LoPresti Company has 300,000 shares authorized, 260,000 shares issued, and 40,000 shares of treasury stock. The number of shares outstanding is:

Blue Angel Company has $110,000 of 9% noncumulative, preferred stock outstanding. Blue Angel also has $510,000 of common stock outstanding. In the company’s first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $31,000. This dividend should be distributed as follows:

Northwest Corporation issued 10-year, 7% bonds with a par value of $250,000. Interest is paid semiannually. The market rate on the issue date was 6%. Northwest received $268,603 in cash proceeds. Which of the following statements is true?

Brickton Corporation’s most recent balance sheet reports total assets of $35,000,000 and total liabilities of $17,500,000. Management is considering issuing $5,000,000 of par value bonds (at par) with a maturity date of ten years and a contract rate of 7%. What effect, if any, would issuing the bonds have on the company’s debt-to-equity ratio?