Which of the following is/are true regarding the classification of redeemable preferred shares on the balance sheet?
a. The classification of redeemable preferred shares on the balance sheet depends on the conditions for redemption.
b. If only the issuing firm has the option to redeem, then the preferred shares are part of its shareholders' equity.
c. If the issuing firm must redeem the preferred shares (so-called "mandatory redemption"), either at a specified time or upon a specified condition certain to occur, the issuing firm treats the preferred shares as a liability.
d. If the preferred shareholders have the option to require redemption, then the preferred shares appear between liabilities and shareholders' equity under U.S. GAAP and as a liability under IFRS.
e. all of the above
E
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Assume that interest rates on 15-year noncallable Treasury and corporate bonds with different ratings are as follows: T-bond = 7.72%A = 9.64%AAA = 8.72%BBB = 10.18%The differences in rates among these issues were most probably caused primarily by:
A. Tax effects. B. Default risk differences. C. Maturity risk differences. D. Inflation differences. E. Real risk-free rate differences.
Alex wants to make sure that Acme Global is getting work done whenever and however it must be done. He frequently asks the question, “Did we do the right things?” Alex is concerned with ______.
A. efficiency B. empathy C. effectiveness D. sustainability
The proportion of world trade accounted for by North America has evidenced ____ since 1980.
A. a tripling B. an increase of 20 percent C. no change D. more than a fivefold increase E. an overall decline
The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Accumulated Depreciation $ 2,300 Fees Earned 14,700 Depreciation Expense 1,300 Insurance Expense 200 Prepaid Insurance 4,800 Supplies 900 Supplies Expenses 3,800 Net income for the period is
A) $1,400 B) $9,400 C) $14,700 D) $7,100