Which of the following is/are not 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 its shareholders' equity.
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.
e. If the preferred shareholders have the option to require redemption, then the preferred shares appear as a liability under IFRS.
C
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When Smith Builder's Designer House #201 is completed, Smith's
A) Work in Process Inventory is increased. B) total assets are increased. C) Work in Process Inventory is decreased. D) total assets are decreased.
Which of the following actions does NOT help managers defend against a hostile takeover?
A. Establishing a poison pill provision. B. Granting lucrative golden parachutes to senior managers. C. Establishing a super-majority provision in the company's bylaws to raise the percentage of the board of directors that must approve an acquisition from 50% to 75%. D. Retiring long-term debt early to reduce total debt on the balance sheet which will increase the firm's financial position. E. Finding a "white squire" that will buy enough of the target firm's shares to block the hostile takeover.
There are ________ risk and ________ returns to investors in private equity buyouts
A) high; low B) low; high C) high; high D) low; low
Sales promotion methods include all of the following except:
A. premiums. B. coupons. C. rebates. D. news releases. E. frequent-user incentives.