All-American University, a U.S. university, provides tuition support for up to eight semesters of undergraduate education for up to two children of faculty and staff of the university. To qualify for this tuition benefit, the faculty or staff member
must have at least seven contiguous years of full-time service and be a full-time employee when the benefits are received. All-American estimates that this tuition benefit helps retain and attract employees. How should All-American treat its expenditures on these tuition benefits each year?
The expenditures do not qualify as an asset because (1) All-American University
cannot point to a specific future economic benefit that it controls (employees can choose to work elsewhere even though doing so sacrifices the tuition benefit), and (2) there is not a reasonably reliable measurement attribute for this benefit.
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The curve that shows the relationship between the sales price and quantity sold is called the:
A. marginal revenue curve. B. revenue curve. C. average cost curve. D. demand curve. E. profit curve.
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Indicate whether the statement is true or false
The forward prices on a barrel of crude oil are $112 and $118 in years one and two, respectively. The interest rates on zero coupon government bonds are 3.0% and 3.5% in years one and two, respectively
What is the likely 2-year swap price on a barrel of crude oil? A) $112.00 B) $116.60 C) $118.00 D) $120.50
Budgets are
a. restrictive. b. complicated. c. are forward looking. d. permanent. e. unnecessary.