The terms "earnings and profits" and "retained earnings" are identical in meaning
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: The notion of "earnings and profits" is similar in many respects to the accounting concept of "retained earnings.". Both are measures of the firm's accumulated capital. A difference exists, however, in the way these figures are calculated. The computation of retained earnings is based on financial accounting rules while E & P is determined using rules specified in the tax laws.
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Hedging is the process of avoiding or covering a foreign exchange risk.
a. True b. False
Although businesses engage in a wide variety of activities, all of these activities can be categorized into three types. Which of the following choices best reflects these three types of business activities?
a. Operating, financing, reporting b. Investing, reporting, financing c. Operating, financing, investing d. Investing, reporting, operating
Jill wins a lawsuit against Terry in the Wyoming state court. The court passes a judgment for Terry to pay $20,000 to Jill. Immediately after the case is settled, Terry moves to Colorado, where she owns a house, and refuses to pay Jill the money
Which of the following is the best course of action for Jill? A) file a lawsuit against Terry in a Colorado state court to enforce the Wyoming court judgment B) file another case against Terry in the Wyoming state court to collect the money against Terry's property C) file a case against Terry in Wyoming to force Terry to sell her house in Colorado to pay the money D) file a case in the Colorado federal court as this qualifies as a federal question case
________ selling is the core of all modern selling strategies.
Fill in the blank(s) with the appropriate word(s).