Which of the following statements is CORRECT?
A. Even if the pure expectations theory is correct, there might at times be an inverted Treasury yield curve.
B. If the yield curve is inverted, short-term bonds have lower yields than long-term bonds.
C. The higher the maturity risk premium, the higher the probability that the yield curve will be inverted.
D. Inverted yield curves can exist for Treasury bonds, but because of default premiums, the corporate yield curve cannot become inverted.
E. The most likely explanation for an inverted yield curve is that investors expect inflation to increase in the future.
Answer: A
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Joey Bruce is a cost accountant at ABC Industries. Joey told Tanner Scott, his financial advisor, that he was working on a project to determine the feasibility of a merger of ABC Industries with Left Guard Company, a major competitor. Which of the Institute of Management Accountant's (IMA) ethical standards may have been violated?
a. Competence b. Confidentiality c. Integrity d. Credibility
Because accounting measures should be verifiable, liabilities should not be estimated
Indicate whether the statement is true or false
Which of the following are agency costs?
I. Forgoing an investment opportunity which would add to the market value of the owner's equity II. Paying a dividend to each of the existing shareholders III. Purchasing new equipment which increases the value of each share of stock IV. Hiring outside auditors to verify the accuracy of the company financial statements A) I and III only B) I and IV only C) II and III only D) II and IV only E) I, II, and IV only
An organization's most important resource is its ____ resources.
A. material B. human C. financial D. information E. technical