A derivative may have zero initial cost, but potentially large positive or negative fair values later
Indicate whether the statement is true or false
T
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A deficit in Retained Earnings is reported in the stockholders' equity section of the balance sheet
a. True b. False Indicate whether the statement is true or false
Which of the following is not true about the cost of a factory employee's pension plan?
a. It is incurred when paid to the employee during his/her retirement. b. It should be accrued systematically over the period of an employee's active service. c. In some cases, it may be partially offset by contributions made by employees. d. It may be charged to general and administrative expenses under the premise that the existence of a pension plan is beneficial to the company as a whole.
Which of the following types of companies would be most likely to benefit from activity-based costing?
A) Companies with a low potential for cost distortions B) Companies that have a large proportion of unit-level costs C) Companies that have a relatively high proportion of overhead compared to direct materials and direct labor D) None of these
Which of the following statements about a company's operating cycle is not true:
A. For a merchandiser selling products, the operating cycle is the time span between paying suppliers for merchandise and receiving cash from customers. B. Non-current items are those expected to come due within one year or the company's operating cycle. C. Most operating cycles are less than one year. D. The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods and services. E. The length of a company's operating cycle depends on its activities.