The accounting for employee stock options involves amortizing the fair value of the stock options on the date of the grant over the requisite service period, which is

a. expected period of benefit.
b. one year.
c. two years.
d. three years.
e. five years.


A

Business

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Indicate whether the statement is true or false

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In its role as a lender of last resort, the government lends to banks that are

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Umbero Nix, a garment manufacturing company, produces twenty thousand units of sweaters. These units are sold within three months and replenished with another twenty thousand units. In one year, Umbero Nix replaces its inventory of sweaters four times over. Umbero Nix most likely analyzes _____ to measure how many times its inventory is sold and replaced each year.

A. capital budgeting ratios B. profitability ratios C. leverage ratios D. asset management ratios

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Which of the following statements is FALSE?

A) In recent years, the investment banking firm of WR Hambrecht + Company has attempted to change the IPO process by selling new issues directly to the public using an online auction IPO mechanism called Open IPO. B) The lead underwriter is the primary banking firm responsible for managing the deal. The lead underwriter provides most of the advice and arranges for a group of other underwriters, called the syndicate, to help market and sell the issue. C) Because of the potential conflict of interest, the underwriter will not make a market in the stock after the issue. D) The SEC requires that companies prepare a registration statement, a legal document that provides financial and other information about the company to investors, prior to an IPO. Company managers work closely with the underwriters to prepare this registration statement and submit it to the SEC.

Business