The price of a bond is equal to the sum of the interest payments and the face amount of the bonds

a. True
b. False

Indicate whether the statement is true or false


False

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Summaries are ______________ of the important points in a document

a. direct quotations b. maps c. abridgements d. explanations

Business

______ placed some significant limits on executive pay in public corporations and added new requirements for both reporting of compensation and of shareholder involvement with executive compensation.

A. Executive Compensation and Shareholder Involvement Act of 2010 B. The Madison Avenue Wall Street Reform and Consumer Protection Act of 2008 C. The Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 D. The Wall Street Compensation and Shareholder Involvement Act of 2008

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The table is the most frequently used graphic in reports because it can clarify large quantities of data in small spaces

Indicate whether the statement is true or false

Business

Financial statements for Narstad Corporation appear below:Narstad CorporationBalance SheetDecember 31, Year 2 and Year 1(dollars in thousands) Year 2Year 1Current assets:      Cash and marketable securities$100 $100 Accounts receivable, net 220  190 Inventory 190  180 Prepaid expenses 10  20 Total current assets 520  490 Plant & equipment, net 1,940  1,940 Total assets$2,460 $2,430        Current liabilities:      Accounts payable$150 $150 Accrued liabilities 90  70 Notes payable, short term 100  150 Total current liabilities 340  370 Bonds payable 310  300 Total liabilities 650  670 Stockholders' equity:      Common stock, $2 par 180  180 Additional paid-in capital 330  330 Retained

earnings 1,300  1,250 Total stockholders' equity 1,810  1,760 Total liabilities & stockholders' equity$2,460 $2,430 Narstad CorporationIncome StatementFor the Year Ended December 31, Year 2(dollars in thousands)Sales (all on account)$1,770 Cost of goods sold 1,230 Gross margin 540 Selling and administrative expense 210 Net operating income 330 Interest expense 30 Net income before taxes 300 Income taxes (30%) 90 Net income$210 Narstad Corporation's debt-to-equity ratio at the end of Year 2 was closest to: A. 0.36 B. 0.17 C. 0.50 D. 0.19

Business