Which of the following statements about relevant risk and irrelevant risk is correct?
A. Relevant risk includes inflation risk, but excludes political risk.
B. Relevant risk includes interest rate risk, but excludes a firm's default risk.
C. Relevant risk includes economic risk, but excludes exchange rate risk.
D. Relevant risk includes exchange rate risk, but excludes inflation risk.
E. Relevant risk includes a firm's default risk, but excludes political risk.
Answer: B
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Which of the following is true about etic and emic approaches to country analysis?
A) The etic and emic approaches are identical. B) An emic approach studies a culture from within; etic analysis is "from the outside." C) An emic approach studies a culture "from the outside"; etic analysis studies a culture from within. D) The emic/etic distinction is not useful in cultural studies. E) The emic/etic approaches cannot be applied to Asian countries.
How should the gain or loss that is considered infrequent be disclosed?
A) separately in the income statement immediately after income from continuing operations B) on a net-of-tax basis in the income statement immediately after income from continuing operations C) as an contingency item in the footnotes D) separately in the income statement as a component of income from continuing operations
Answer the following statements true (T) or false (F)
The decision-model approach to accounting research is normative.
The return on a bond is equal to the yield to maturity when
A) the holding period is longer than the maturity of the bond. B) the maturity of the bond is longer than the holding period. C) the holding period and the maturity of the bond are identical. D) none of the above.