To determine the risk premium associated with an asset's expected return, two components of the return are usually cited, only the first, the covariance of the asset's return with the market portfolio, is used, because ________
A) the risk associated with the asset depends on the market risk
B) it is the only part of the asset's expected return that has risk
C) the risk of the second component can be diversified away
D) the market risk is the most difficult to calculate
Answer: C
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Both debit and credit balances of Factory Overhead are shown in the Adjusted Trial Balance columns of the work sheet; however, neither of these amounts is extended to the Income Statement or to the Balance Sheet columns
a. True b. False Indicate whether the statement is true or false
Which of the following accounts would be adjusted by the disposal of an immaterial amount of overapplied overhead?
a. Finished Goods Inventory b. Materials Inventory c. Work in Process Inventory d. Cost of Goods Sold
On January 1, a company issues bonds dated January 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $312,177. The journal entry to record the first interest payment using the effective interest method of amortization is:
A. Debit Bond Interest Expense $14,717.70; credit Premium on Bonds Payable $1,217.70; credit Cash $13,500.00. B. Debit Bond Interest Expense $12,487.08; debit Discount on Bonds Payable $1,012.92; credit Cash $13,500.00. C. Debit Bond Interest Expense $12,487.08; debit Premium on Bonds Payable $1,012.92; credit Cash $13,500.00. D. Debit Interest Payable $13,500; credit Cash $13,500.00. E. Debit Bond Interest Expense $12,282.30; debit Premium on Bonds Payable $1,217.70; credit Cash $13,500.00.
The term licensor refers to a(n) ________ of intellectual property or informational rights who transfers rights in the property or information to another party.
A. owner B. possessor C. creator D. thief