In perfect capital markets, the capital structure decision is: important because it affects the cash flows to shareholders. important because debt and equity are taxed differently. irrelevant because the decision has no effect on cash flows. important sometimes.

The strength of the economy depends on the balance pf production and consumption of goods and consumption of goods and services

Cynthia is a hospitality worker in the lodging industry who prefers to cater to small groups of people. she might want to open a

Wilson company paid $5,000 for a 4-month insurance premium in advance on november 1, with coverage beginning on that date. the balance in the prepaid insurance account before adjustment at the end of the year is $5,000, and no adjustments had been made previously. the adjusting entry required on december 31 is: (a) debit cash. $5,000: credit prepaid insurance. $5,000. (b) debit prepaid insurance. $2,500: credit insurance expense. $2500. (c) debit prepaid insurance. $1250: credit insurance expense. $1250. (d) debit insurance expense. $1250: credit prepaid insurance. $1250. (e) debit insurance expense. $2500: credit prepaid insurance. $2500.