The Sarbanes-Oxley Act, or SOX A) holds corporate advisors strictly accountable in a legal sense for any instances of misconduct. B) pretexts the interests of shareholders by providing greater protection against accounting fraud and financial misconduct. C) reduces the cost of financial reporting by standardizing reporting requirements. D) accomplishes both A and B. […]
There are a number of implied warranties in ocean marine insurance. One implied warranty is that the vessel is properly constructed and maintained, and that it is properly equipped for the voyage to be undertaken. This implied warranty is the warranty of A) seaworthiness. B) barratry. C) no deviation from planned course. D) legal purpose. […]
All of the following are considered to be instrumentalities of transportation and communication for purposes of inland marine insurance EXCEPT A) trains. B) tunnels. C) transmission lines. D) television towers. ANSWER Answer: A
Which of the following is NOT true for a limited partnership? A) Limited partners may sell their interest in the company. B) It has limited liability for its owners. C) One general partner must exist who has unlimited liability. D) Only the name of general partners can appear in the name of the firm. […]
Each functional area is, in some way, involved in the generation or consumption of cash. Indicate whether the statement is true or false ANSWER TRUE
The Sarbanes-Oxley Act of 2002 holds all of the following groups strictly accountable in a legal sense for any instances of misconduct EXCEPT A) investors. B) outside members of the board of directors. C) company officers. D) lawyers. ANSWER A
Accounting supports financial managers by providing all of the following EXCEPT: A) identifying relevant data related to the activities of the firm. B) presenting data in an agreed-upon and standardized form known as generally accepted accounting practices. C) summarizing the firm’s economic activity in the form of financial statements. D) generating revenue for the firm. […]
XYZ Corporation has a P/E ratio of 20 and EFG Corporation has a P/E ratio of 10. It is likely that A) investors expect XYZ’s earnings to grow faster than EFG’s earnings. B) investors believe XYZ stock is overvalued. C) investors believe that for the same level of earnings growth, XYZ is a higher risk […]
The beta of a T-bill is one. Indicate whether the statement is true or false ANSWER FALSE
You estimate you’ll need $200,000 per year for 25 years starting on your 65th birthday to live on during your retirement. Today is your 50th birthday and you want to make equal deposits into an account paying 9% interest per year, the first deposit today and the last deposit on your 64th birthday. How much […]
