Zero-coupon bonds are priced at deep discounts

Indicate whether the statement is true or false.


Answer: TRUE

Business

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The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

a. $60,000 b. $20,000 c. $120,000 d. $100,000

Business

When a credit entry is made to Accounts Receivable, posting is required in the subsidiary ledger but not in the controlling account

Indicate whether the statement is true or false

Business

Financial statement elements relating to income are defined in FASB Concepts Statement 6 as follows:

a. Gains are increases in equity from ongoing major or central operations of an entity. b. Expenses are outflows of assets or liabilities incurred from peripheral or incidental transactions of an entity. c. Revenues are inflows or other enhancements of assets or settlements of liabilities from ongoing major or central operations. d. Losses are all decreases in equity other than from transactions with owners.

Business

In order to achieve a peaceful coexistence in its community, an organization must be able to fulfill its business objectives, even if some community members rightfully object to it

Indicate whether the statement is true or false

Business