The Revised Act and the majority of states hold that the officers' and directors' test of the duty of diligence requires a director or officer to discharge her duties:
A) in good faith.
B) with the care an ordinarily prudent person in a like position would exercise under similar circumstances.
C) in a manner she reasonably believes to be in the best interests of the corporation.
D) All of these.
D
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Which of the following types of expenditures is not subject to capitalization under the UNICAP rules?
A. Selling expenditures B. Cost of manufacturing labor C. Cost of raw materials D. Compensation of managers who supervise production E. All of the choices are subject to capitalization under the UNICAP rules
If a company has issued only one class of stock, the earnings per share are determined by dividing net income plus interest expense by the number of shares outstanding
Indicate whether the statement is true or false
List three ratios that are measures of liquidity
Philp Inc. sold equipment with a $132,900 adjusted tax basis for $200,000. The purchaser paid $20,000 in cash and assumed Philp's $180,000 mortgage on the asset. Compute Philp's net cash flow from the sale assuming a 21% tax rate.
A. $20,000 B. -0- C. $15,800 D. None of the above