Directors and officers insurance protects the company if key personnel die or leave the firm for other opportunities
Indicate whether this statement is true or false.
Answer: FALSE
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Contribution margin income statement helps managers to view revenue and cost relationships on a per unit basis or as a percentage of sales
Indicate whether the statement is true or false
The sanction usually imposed by employers for gross misconduct is:
a. summary dismissal b. demotion c. pay freeze d. fine
Although public-incentivized work programs in the United States like WOTC assisted former welfare recipients in receiving and maintaining jobs, there was a relatively low participation rate by firms in these programs. What may have been a contributing factor to the low program participation rate by the U.S. firms?
a. the disruption in the workplace as a result of the special treatment afforded this group b. high transaction costs relative to the benefits c. the lack of fundamental skills and literacy of the participants d. lack of senior-level champions inside the organization
On January 1, 2016, Dermot Company purchased 15% of the voting common stock of Horne Corp. On January 1, 2018, Dermot purchased 28% of Horne's voting common stock. If Dermot achieves significant influence with this new investment, how must Dermot account for the change to the equity method?
A. It must restate the financial statements for 2017 and 2016 as if the equity method had been used for those two years. B. It must restate the financial statements for 2017 as if the equity method had been used then. C. It should prepare consolidated financial statements for 2018. D. It must use the equity method for 2018 but should make no changes in its financial statements for 2017 and 2016. E. It should record a prior period adjustment at the beginning of 2018 but should not restate the financial statements for 2017 and 2016.