You have been accepted to study international economy at the European Central Bank (ECB) in Frankfurt. You will need $10,500 every 6 months (beginning today) for the next three years to cover tuition and living expenses. Mom and Dad have agreed to pay for your education, and want to make one deposit today in a […]
Date: September 19th, 2020
When a company sells a piece of equipment or land, any gain (sales price less the book value of the asset or residual value) is thought to be a capital gain. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
What are the differences between GAAP and IFRS? What will be an ideal response? ANSWER The United States follows Generally Accepted Accounting Principles (GAAP). GAAP is rule-based accounting standards established by the Financial Accounting Standards Board (FASB). It sets out the standards, conventions, and rules that accountants must follow when preparing audited financial […]
Date: September 19th, 2020
State X hired Build-Right Construction to build a bridge. State X required that construction be completed within 2 years after the contract was signed. Les Johnson is the president of Build-Right. State X required that Build-Right’s promise to perform be guaranteed by a third party. Build-Right purchased a performance bond from Rock Solid Indemnity. The […]
Date: September 19th, 2020
Which of the following is/are true? A) Two points on the Characteristic Line are the T-bill and the market portfolio. B) Most of the unsystematic risk is removed by the time a portfolio contains 30 stocks. C) The greater the total risk of an asset, the greater the expected return. D) All securities have a […]
Date: September 19th, 2020
It is not unusual for a successful firm to temporarily grow more rapidly than its sustainable growth rate if the firm is in the ________ phase of business. A) swan song B) start-up C) cash cow D) middle ANSWER B
Date: September 19th, 2020
Which type of business ownership has limited liability? A) Sole proprietors B) General partners C) Shareholders of a corporation D) None of the above ANSWER C
Date: September 19th, 2020
Liquid assets are less risky than investment assets. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
XYZ Insurance Company markets a wide range of coverages. One type of coverage provides monetary compensation if a bonded party fails to perform certain acts. This coverage is called A) property insurance. B) liability insurance. C) a fidelity bond. D) a surety bond. ANSWER Answer: D
Date: September 19th, 2020
A cashier at Food World Supermarket accepted a phony $100 bill. Which ISO commercial crime coverage is designed to cover such a loss? A) Forgery or Alteration B) Money Orders and Counterfeit Currency C) Inside the Premises—Theft of Money and Securities D) Inside the Premises—Robbery or Safe Burglary of Other Property ANSWER Answer: […]
Date: September 19th, 2020
