Keeping your funds in liquid assets is riskier than keeping them in illiquid assets and therefore investors require a higher expected rate of return on liquid assets
Indicate whether this statement is true or false.
Answer: FALSE
You might also like to view...
Which of the following statements concerning audit evidence is correct?
A. The cost of obtaining evidence is not an important consideration to an auditor in deciding what evidence should be obtained. B. A company's accounting data cannot be considered sufficient audit evidence to support the financial statements. C. Effective internal controls contribute little to the reliability of the evidence created within the entity. D. Appropriate evidence supporting management's assertions should be convincing rather than persuasive.
A franchisee owner is unsatisfied because the manufacturer provides more benefits to a wholesaler. This conflict is an example of a(n) ________ conflict
A) horizontal B) vertical C) intermediate D) multichannel E) parallel
Shrinkage is the inventory loss due to employee theft, shoplifting, mistakes, inaccurate records, and vendor errors.
Answer the following statement true (T) or false (F)
Delicious Food Products is famous for its trail mix. The main ingredient of the trail mix is dried fruit, which Delicious purchases by the pound. In addition, the production requires a certain amount of direct labor. Delicious uses a standard cost system, and at the end of the first quarter, there was an unfavorable direct materials efficiency variance. Which of the following is a logical explanation for that variance?
A) The production manager negotiated a lower wage package for production staff, bringing direct labor costs down. B) The factory lost two experienced workers at the beginning of the quarter, and their replacements wasted a large amount of dried fruits during their training period. C) The purchasing manager was able to secure a volume discount on dried fruit, purchasing the fruit for less than the amount set by standard. D) The production staff changed the work flow process so that production required fewer direct labor hours.