How are investors in zero-coupon bonds compensated for making such an investment?
A) Such bonds are purchased at their face value and sold at a premium on a later date.
B) Such bonds make regular interest payments.
C) Such bonds are purchased at a discount, below their face value.
D) Such bonds have a lower face value as compared to other bonds of similar term.
Answer: C
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Opportunity, pressure and rationalization are the three elements of the fraud triangle.
Answer the following statement true (T) or false (F)
A disadvantage of the corporate form of business is
A) centralized authority and responsibility. B) its status as a separate legal entity. C) government regulation. D) continuous existence.
Regarding the use of a spreadsheet for the preparation of the statement of cash flows, which of the following statements is TRUE?
A) The T-account approach works well for all companies. B) The statement of cash flows cannot be prepared directly from the spreadsheet because additional information is needed. C) The spreadsheet is needed when companies face complex situations. D) The spreadsheet can only be used if the indirect method for operating activities is also used.
The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows: Standard: 25,000 hours at $10 $250,000 Actual: Variable factory overhead 202,500 Fixed
factory overhead 60,000 What is the amount of the factory overhead controllable variance? A) $10,000 favorable B) $2,500 unfavorable C) $10,000 unfavorable D) $2,500 favorable