A firm's stock price may decline by less than 50% after a 2 for 1 stock split if the reduction in price
moves the stock into its optimal trading range.
Indicate whether the statement is true or false
TRUE
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Connections to major highways, pedestrian traffic flow, and availability of mass transit are examples of
A. exclusivity. B. visibility. C. availability. D. cost. E. accessibility.
Materials a company acquires to use in making products are called:
A. Cost of goods sold. B. Finished goods inventory. C. Conversion costs. D. Work in process inventory. E. Raw materials inventory.
Stocks that are readily available to the general public and that are bought and sold on the open market are known as
A) initial public offerings. B) publicly traded issues. C) treasury stocks. D) blue chip stocks.
An intra-entity transfer took place whereby the transfer price was less than the book value of a depreciable asset. Which statement is true for the year subsequent to the year of transfer?
A. A worksheet entry is made with a debit to investment in subsidiary for an upstream transfer. B. A worksheet entry is made with a debit to retained earnings for an upstream transfer, regardless of the method used to account for the investment. C. A worksheet entry is made with a debit to investment in subsidiary for a downstream transfer. D. A worksheet entry is made with a credit to investment in subsidiary for a downstream transfer when the parent uses the equity method. E. No worksheet entry is necessary.