Under Rule 10b-5, if a noninsider (the tippee) receives material nonpublic information from an
insider (the tipper), the tippee:
A) May use it to make a profit by buying or selling that company's stock.
B) Must disclose that information.
C) Must abstain from trading in any and all stock.
D) May use it to make a profit by buying or selling that company's stock, only if the tipper
voluntarily disclosed the nonpublic information.
E) Must either abstain from trading in that company's stock or disclose the information to
the person he is trading with.
E
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Chang Company purchased several investments in December 2017. Costs and market values of those investments on December 31, 2017, are presented below: ? Cost Market Value XYZ stock $200,000 $180,000 ABC stock 400,000 420,000 DEF stock 600,000 540,000 ? Assuming all of the securities are classified as trading securities, the journal entry required on December 31, 2017, the end of Chang's fiscal
year, would include a A) debit to Unrealized Holding Gain/Loss-Trading Securities of $60,000. B) credit to Unrealized Holding Gain/Loss-Trading Securities of $60,000. C) credit to Unrealized Holding Gain/Loss-Trading Securities of $80,000. D) debit to Investment in Trading Securities of $60,000.
Julie Webb, CPA takes out an automobile loan with First National Bank of Wellville (FNBW) while attending the University of Wellville. Julie graduates one year later and is hired as an auditor by Best and Driftwood, LLP. Her first assigned audit engagement is with First National Bank of Wellville, a client of Best and Driftwood. As a new audit assistant, Julie continues to pay her automobile loan
payments each month. Which of the following best describes Julie's independence status? a. Impaired because Julie has a direct financial interest in FNBW. b. Impaired because Julie has a material indirect financial interest in FNBW. c. Not impaired because Julie has an immaterial indirect financial interest in FNBW. d. Not impaired because Julie is permitted to take normal loans from FNBW.
Using the Direct Method For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the direct method. When using the direct method, where is depreciation expense recorded on the statement of cash flows?
A) Operating activity B) Investing activity C) Financing activity D) Not reported on the statement of cash flows
The ‘new’ career is associated with which of the following:
a. relational psychological contract b. unbroken psychological contract c. continuous psychological contract d. transactional psychological contract