Investment companies can inflate the percentage of funds that outperformed their benchmark by
A) including unrealized capital gains.
B) closing funds that underperformed their benchmark.
C) using a different fiscal year than the benchmark.
D) assuming that investors automatically add to their holdings.
Answer: B
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Answer the following statements true (T) or false (F)
1. A company's investments in stock or bonds cannot include the acquisition of an entire company. 2. Just as individuals invest in a variety of companies' stocks and bonds, the same is true for businesses. 3. The owner of a bond or stock of a corporation is referred to as the investor. 4. A preferred stock is an example of a debt security.
When production is greater than sales, the operating income will be higher under absorption costing than variable costing. Assume zero beginning and ending inventories. Which of the following gives the correct reason for the above statement?
A) All costs incurred have been recorded as expenses. B) A portion of the fixed manufacturing overhead is still in the ending Finished Goods Inventory account under absorption costing. C) All selling and administrative expenses have been recorded as period costs. D) Fixed manufacturing costs have not been considered when calculating the operating profits.
Resource use in a manufacturing process is typically uneven, and in order to achieve a balanced flow of work through the process, the bottleneck resource should be controlled. This is the basic principle of ______.
A. computerized short-term scheduling B. theory of constraints C. Johnson’s rule D. priority rule
Skylar, an antique dealer, intentionally represents the value of an antique chest of drawers as $6,000 when she has reason to know the value is considerably less. Margaret agrees to buy it for $5,500. It is actually worth $2,500. In a state that uses the "benefit-of-the-bargain" rule, Margaret's damage award would be:
A) $3,500. B) $3,000. C) $500. D) $2,500.