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NEW QUESTION 36
An apparel company is negotiating a new contract with one of its fabric suppliers. Under which of the following conditions will the apparel company have power to bargain for a lower price in the negotiations?

A. If the supplier has several competitors and only a few customersB. If quality of its fabric is important to the apparel companyC. If the apparel industry is growing quicklyD. If the apparel company's employees would need training to use a new supplier's materials

Answer: A

 

NEW QUESTION 37
Which of the following options is presented in the above accounting journal entry?

A. Sale of goods at costB. Capitalization of inventoryC. Sale of fixed assets on creditD. Sale of goods on account

Answer: D

 

NEW QUESTION 38
In determining Earnings before Interest and Taxes (EBIT), an analyst needs to make what adjustments to the net income amount with regards to income statement items? (Select all that apply.)

A. Add depreciationB. Deduct change in net working capitalC. Add interest expenseD. Add taxesE. Deduct capital expenditures

Answer: C,D

 

NEW QUESTION 39
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