Consider the following statements below:       Statement 1: The creditor may bring the appropriate actions to protect and preserve his right only after the fulfillment of the condition.                                   Statement 2: The debtor may recover what he has paid if he believed by mistake that the condition has been fulfilled.1 pointOnly statement 2 is true.Only statement 1 is true.Both statements are false.Both statements are true.

2. Which of the following statements is FALSE?Video: 5.F. P54-72 (Capital structure with other market imperfections 1)Group of answer choicesD) Bankruptcy is rarely simple and straightforward—equity holders don’t just "hand the keys" to debt holders the moment the firm defaults on a debt payment.B) With perfect capital markets, the risk of bankruptcy is not a disadvantage of debt—bankruptcy simply shifts the ownership of the firm from equity holders to debt holders without changing the total value available to all investors.A) When a firm fails to make a required payment to debt holders, it is in bankruptcy.C) Bankruptcy can be a long and complicated process that imposes both direct and indirect costs on the firm and its investors that the assumption of perfect capital markets ignores. PreviousNext

James leaves his car with Good Service Garage for repairs, but fails to pay. Charles claims the car from Good Service Garage. He is able to prove that he is the true owner of the car, which was stolen from him by James. Which ONE of the following statements is CORRECT?a.Good Service Garage has a debtor and creditor lien against James.b.Good Service Garage has a debtor and creditor lien against Charles.c.Good Service Garage has an enrichment lien against Charles in respect of any work done to the car, either useful or unnecessary.d.Good Service Garage has a debtor and creditor lien against Charles in respect of luxurious expenses on the car.

Indicate whether the following statement is True or FalseReconciling the individual creditor's account in the creditors ledger with the monthly creditor's statement is a control activity that will identify an error of omission in the purchases journal

hich of the following statement is correct? Statement 1: Promissory Notes promises to pay the money that is due.Statement 2: A promissory note may be in writing and also be an oral contractual promise to pay money.a.Only statement 1 is true.b.Only statement 2 is true.c.Both statements are false.d.Both statements are true.

Which one of the following statements is true?Sales on credit, or accounts receivable increase cash flowCurrent liabilities, including a bank loan decrease cash flowThe salvage value generates cash from selling an existing asset todayOpportunity costs include assets owned by the firm that could be sold if a project is not undertakenBonds represent a source of operating cash flow