Which one of the following statements is TRUE?
A. Asset switching occurs when a company borrows money for a safe investment but uses it for a risky investment.
B. An example of an agency cost is when the board of directors pays a dividend to shareholders.
C. An example of an agency cost is when an attorney hires an expert witness for a trial.
D. The commission required by the Federal Housing Agency for a small business loan is an example of an agency cost.
E. An example of an agency cost is the salary of the agent hired to work for the principal.
Answer: A
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A. 0.2 B. 2 C. 20 D. 80
Solomon filed a complaint stating: "I was driving my 2000 Lexus carefully and under the speed limit on Sunrise when I came to the intersection of Sunrise and Madison. Garcia was driving his 2002 Ford Pickup on Madison when he ran a red light and collided with my Lexus causing damages to the Lexus. I demand $12,000 from Garcia to pay for the damages to my Lexus and $10,000 for medical bills and
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[The following information applies to the questions displayed below.]On January 1, Year 1, Vanguard Company purchased a copyright for $12,000. Vanguard estimated the remaining useful life of the copyright to be 6 years. Which of the following correctly shows the effect of Vanguard's purchase of the copyright on the elements of the financial statements? Assets=Liab.+EquityRev.?Exp.=Net Inc.Stmt of Cash FlowA.NA NA ++ NA ++FAB.? NA ?NA + ??IAC.NA NA NANA NA NA?IAD.+ NA +NA NA NA?OA
A. Option A B. Option B C. Option C D. Option D