Which of the following is a condition to record an investment as an available-for-sale security?
A) The investor plans to hold the debt security until it matures.
B) The investor should have a significant interest in the voting stock of the investee.
C) It must be a debt security.
D) The ownership in the voting stock of the investee should be less than 20 percent.
D
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Discuss efficient consumer response (ECR) and the continuous replenishment program (CRP)
What will be an ideal response?
Which of the following is true of the Endangered Species Act?
A) It is the only federal law that protects wildlife at present. B) It empowers the secretary of the interior to declare a form of wildlife as endangered. C) It does not include marine species and amphibian life forms. D) It applies only to situations where governments are responsible for endangering animals.
In a "qualified tax-deferred" retirement plan, taxes are deferred on
A) employer contributions and interest earned by the retirement fund. B) only employer contributions. C) only interest earned by the retirement fund. D) only employee contributions.
Your company is able to arrange financing at either a rate of 12.75% annually, or at a rate of 12%
compounded monthly. Assuming financing is needed for one year, which rate is the best? A) 12.75% annually, because the annual percentage yield for 12% compounded monthly is greater than 12.75%. B) 12.75% annually, because even though the annual percentage yield is higher, interest if paid only once per year at year end. C) 12% compounded monthly, because the annual percentage yield is 12.68%. D) Both rates are effectively the same, so your company should be indifferent between the two.