Which of the following is an example of managing earnings up?
a. Decreasing estimated salvage value of equipment.
b. Writing off obsolete inventory.
c. Underestimating warranty claims.
d. Accruing a contingent liability for an ongoing lawsuit.
Answer: c. Underestimating warranty claims.
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Marketing plans should not be aggressively communicated either internally or externally to protect competitive position
Indicate whether the statement is true or false
__________ are shortcuts or “rules of thumb” that allow us to make judgments and decisions quickly and efficiently.
a. Heuristics b. Satisficing c. Persuasive d. Intuition
When compared to the yield curve for Treasury securities, the yield curve for corporate securities should
A) slope in the opposite direction. B) be similar in shape but higher. C) be similar in shape but lower. D) be nearly identical.
Involves the use of the law and the legal process to resolve disputes among individuals, businesses, and governments
a. civil litigation b. subject matter jurisdiction c. territorial jurisdiction d. concurrent jurisdiction e. criminal litigation