U.S. GAAP requires firms holding debt and equity securities, as well as derivatives, as trading securities to value the securities on the balance sheet after acquisition at
a. an amount based on acquisition cost.
b. market value, with changes in market value of securities held at the end of the accounting period reported each period in income.
c. market value, with changes in market value of securities held at the end of the accounting period not affecting reported income until the firm sells, or otherwise disposes of, the securities.
d. present value of future cash flows, with changes in present value of future cash flows of securities held at the end of the accounting period reported each period in income.
e. present value of future cash flows, with changes in present value of future cash flows of securities held at the end of the accounting period not affecting reported income until the firm sells, or otherwise disposes of, the securities.
B
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In the statement, “Leader appreciation leads to higher work engagement in employees,” the variable leader appreciation is the ______ variable.
A. independent B. mediating C. dependent D. moderating
Materials used by Jefferson Company in producing Division C's product are currently purchased from outside suppliers at a cost of $10 per unit. However, the same materials are available from Division A. Division A has unused capacity and can produce the materials needed by Division C at a variable cost of $8.50 per unit. A transfer price of $9.50 per unit is negotiated and 30,000 units of
material are transferred, with no reduction in Division A's current sales. How much would Division A's income from operations increase? A) $0 B) $90,000 C) $30,000 D) $60,000
Which of the following is not true of a corporation?
A) It may enter into binding legal contracts in its own name. B) It may sue and be sued. C) The acts of its owners bind the corporation. D) It may buy, own, and sell property.
A "closed shop" is:
a. the same as a "runaway" shop. b. one in which a union once existed but has since been voted out. c. one in which a union is barred. d. outlawed by the Taft-Hartley Act.