A flat yield curve means that the rates do not vary much at different maturities. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Operating profit is ________. A) gross profit minus operating expenses B) sales revenue minus cost of goods sold C) earnings before depreciation and taxes D) sales revenue minus depreciation expense ANSWER A
Date: September 19th, 2020
Net profit after taxes is ________. A) gross profits minus operating expenses B) sales revenue minus cost of goods sold C) EBITDA minus interest D) EBIT minus interest and taxes ANSWER D
Date: September 19th, 2020
The nominal rate of interest on a bond is 7% and an inflation premium of 3%. This results in a real rate of interest of 4% on the bond. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The 2002 Sarbanes-Oxley Act was designed to ________. A) limit the compensation that could be paid to corporate CEOs B) eliminate the many disclosure and conflict-of-interest problems of corporations C) provide uniform international accounting standards D) provide the guidelines to minimize the tax ANSWER B
Date: September 19th, 2020
The 2002 law that established the Public Company Accounting Oversight Board (PCAOB) was called ________. A) the McCain-Feingold Act B) the Harkins-Oxley Act C) the Sarbanes-Harkins Act D) the Sarbanes-Oxley Act ANSWER D
Date: September 19th, 2020
The Public Company Accounting Oversight Board (PCAOB) ________. A) is a not-for-profit corporation that oversees auditors of public corporations B) is a not-for-profit corporation that oversees managers of public corporations C) is a for-profit corporation that oversees auditors of public corporations D) is a for-profit corporation that oversees managers of public corporations ANSWER […]
Date: September 19th, 2020
An interest rate or a required rate of return represents the cost of money. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Longer the maturity of a Treasury security, the smaller the interest rate risk. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The statement of cash flows reconciles the net income earned during a given year, and any cash dividends paid, with the change in retained earnings between the start and end of that year. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
