A derivative is a financial instrument whose value is determined by
A) a regulatory body such as the SEC.
B) an underlying security.
C) futures and options.
D) None of these options are correct.
B) an underlying security.
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Cash flows from acquiring and selling products are classified as
a. operating activities. b. investing activities. c. financing activities. d. distribution activities.
Answer the following statements true (T) or false (F)
1. Prenumbered source documents provide necessary control in a system by automatically assigning a sequential number to each new transaction. 2. A source document provides the evidence and data for accounting transactions. 3. In a computerized accounting information system, all data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses. 4. Companies are now spending less amounts of cash to ensure that their data and information are secure.
The supplies account has a balance of $1,200 at the beginning of the year and was debited during the year for $2,300, representing the total of supplies purchased during the year. If $650 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is
A) $650 B) $1,750 C) $4,150 D) $2,850
A company's strategy is a "work in progress" and evolves over time because of the
A. frequent need to modify key elements of the company's business model. B. need to make regular adjustments in the company's strategic vision. C. importance of developing a fresh strategic plan every year that keeps employees from becoming bored with executing the same strategy year after year. D. ongoing need to imitate the new strategic moves of the industry leaders. E. ongoing need of company managers to react and respond to changing market and competitive conditions.