Bessey Aviation has just sold an issue of 30-day commercial paper with a face value of $5,000,000. The firm has just received $4,958,000. What is the effective annual interest rate on the commercial paper?
Answer: {($5,000,000 - $4,958,000)/$4,958,000} × 12 = 10.17%
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A virtual corporation may enjoy flexibility in operations, but often at higher cost or with less control of quality and schedules.
Answer the following statement true (T) or false (F)
Short-term investments in held-to-maturity debt securities are accounted for using the:
A. Fair value method with fair value adjustment to income. B. Cost method without amortization. C. Fair value method with fair value adjustment to equity. D. Equity method. E. Cost method with amortization.
The chairman of a welfare organization asks an employee to head a fundraising activity. The employee, however, embezzles $250,000 from the funds raised from the activity and falsifies financial records. In this scenario, the behavior of the employee is _____.
A. illegal but ethical B. illegal and unethical C. legal but unethical D. legal and ethical
Scott buys a television from Kacey's Electronics, giving Kacey a check for $550. Kacey uses a special indorsement and negotiates the check to Rory. Rory carefully changes the amount to read $1550 and loses the check on the way to the bank. Harry picks it up and tries to cash it. What will he get?
A) Scott will have to pay him $550. B) Kacey will have to pay him $550. C) Rory will have to pay him $1550. D) No one will have to pay Harry.