Authoritative guidance requires firms that account for notes and bonds using the _____ market interest rate to report the carrying values, or book values, on the balance sheet and to disclose the _____ of these notes and bonds in notes to the financial statements
a. average; historical market interest rates
b. historical; future value
c. current; future value
d. historical, fair value
e. current; historical market interest rates
D
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Briefly describe the different types of pricing objectives
What will be an ideal response?
The principal difference between depreciation expense and most other types of expenses is that depreciation
a. can be avoided if the asset is in as good condition as when it was purchased. b. does not require an immediate cash outlay. c. is not deductible if it will cause a net loss. d. is subject to more precise measurement.
Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios to manufacture specially designed microchips to be used in an audio engineering process. Zeitar was to pay Klint $300,000 as per the contract
Klint decided to redesign their existing microchips and make them suitable for Zeitar. While the finished microchips were being shipped via a carrier, Klint was informed of Zeitar's insolvency. Klint cancelled the shipment before it was delivered. Klint then resold the chips to another studio where they had to settle for $150,000 as the chips were now only suitable for specific audio engineering processes. What legal action can Klint take against Zeitar? A) sue and recover lost profits B) sue to recover purchase price C) get a court order asking for specific performance D) exercise the buyer's right to cover
Over 95 percent of retailers operate more than one store.
Answer the following statement true (T) or false (F)