Which of the following items is consistent with earnings being informative about current performance and informing the analyst that level of current earnings is sustainable?
a. The firm recognizes an unexpected gain
b. The firm recognizes a fair value gain on a financial asset as a result of a favorable move in interest rates.
c. The firm recognizes additional expenses this period due to pre-opening costs associated with new stores.
d. The firm experiences a large jump in sales and earnings as a result of successful research and development of new products.
D
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The relative advantage of a product, with regard to the rate at which innovations are adopted, refers to the extent to which a product is consistent with existing values and past experiences of adopters
Indicate whether the statement is true or false
When does a direct channel appear to be better than an indirect channel?
A) When product customization is important. B) When one-stop shopping for many products is important. C) When availability is important. D) When after-sale service is important.
To prevent a public relations problem, which of the following might be the best way to respond to a critic who posts negative information about the company?
A) Assess the message for flaws. B) Threaten legal action unless the post is removed. C) Contact the writer privately to attempt to resolve the situation. D) Monitor feedback about the complaint before making a decision.
Firms can currently apply the fair value option to capital leases
Indicate whether the statement is true or false