Which of the following is not an advantage of a perpetual inventory system?
A) assists in the prevention of stock outs
B) requires less data processing effort than periodic systems
C) maintains up-to-date inventory and cost of goods sold balances
D) provides evidence of inventory shrinkage
B
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Which of the following is NOT required by generally accepted accounting principles?
a. Statement of cash flows b. Earnings per share c. Cash per share d. Disclosure in notes to financial statements of the projected benefit obligation of a defined-benefit pension plan
David N. Goliath is planning to open a sporting goods store. However, the initial investment is $120,000. He currently has this money in a certificate of deposit earning 10 percent. He may leave it there if he decides not to open the store
If he opens the store and it is successful he will generate a profit of $50,000. If it is not successful, he will lose $90,000. What would the probability of a successful store have to be for David to prefer this to investing in a CD?
The distinction between an infinite customer population and a finite customer population is whether the:
A) potential number of customers is appreciably affected by the number of customers already in the system. B) number of potential customers exceeds the square of the number of servers. C) number of potential customers exceeds the number of servers raised to the power of the number of channels. D) number of customers exceeds infinity.
If the bond market undergoes a large change in yield (for example, more than 100 basis points), then a bond's duration will
A) understate both the price appreciation when rates fall and the price decline when rates increase. B) overstate both the price appreciation when rates fall and the price decline when rates increase. C) overstate the price appreciation when rates fall and understate the price decline when rates increase. D) understate the price appreciation when rates fall and overstate the price decline when rates increase.