What is a maintenance test?
What will be an ideal response?
A maintenance test is a check and balance measure to help the bondholder monitor the company. In particular, the bondholder wants to make sure the covenants are being followed. The maintenance helps achieve this by requiring the borrower's ratio of earnings available for interest or fixed charges to be at least a certain minimum figure on each required reporting date (such as quarterly or annually) for a certain preceding period.
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A company mu?st adjust the consideration for the time value of money if the time period between the customer's payment and the company's transfer of goods or services is more than three months
Indicate whether the statement is true or false
When a company sets out to plan, implement, and control the personal selling function, the company is undertaking ________
A) sales design B) sales management C) group sales efforts D) co-op selling E) sales promotion
U.S. GAAP and IFRS require firms to recognize as assets identifiable intangibles acquired in external market transactions. Which of the following is/are not true?
a. The exchange between an independent buyer and seller provides evidence of the existence of expected future benefits, and the exchange price provides evidence of the fair value of those benefits. b. In external market transactions, identifiable intangibles include patents, trademarks, customer lists, and other economic resources ready for use, as well as in-process technologies with uncertain future benefits. c. In external market transactions, identifiable intangible assets have either finite lives or indefinite lives. d. In external market transactions, firms must amortize intangible assets with finite lives, generally using the straight-line method. e. all of the above
The ________ refers to the belief that things must be either A or B and cannot be both.
A. black swan effect B. glass ceiling effect C. "tyranny of the or" D. "genius of the and" E. survivor's syndrome