A "Crummey demand power" in a trust document allows the donor to demand a distribution from the trust in years in which earnings exist within the trust.
Answer the following statement true (T) or false (F)
False
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During the period when Ben Bernanke was the Fed's Chairman, the inflation rate averaged at about 1.7%. In comparison to other periods when the Fed was headed over by other chairmen, this inflation rate can be considered to be
A. average. B. the highest. C. the lowest. D. above average but not the highest.
Four characteristics are used to differentiate services from goods. Which of the following is NOT one of those characteristics?
A) intangibility B) perishability C) variability D) personalization E) inseparability
Classifying financial statement accounts. The balance sheet or income statement classifies various items in one of the following ways: CA—Current assets NA—Noncurrent assets CL—Current liabilities NL—Noncurrent liabilities CC—Contributed capital RE—Retained earnings NI—Income statement item (revenue or expense) X—Item generally does not appear on a balance sheet or an income
statement Using the abbreviations in the previous list, indicate the classification of each of the following items under U.S. GAAP and IFRS. If the classifications differ between U.S. GAAP and IFRS, indicate what that difference would be. a. Interest revenue. b. Factory. c. Treasury shares repurchased by a corporation. d. Research and development expenditures. e. Automobiles used by sales staff. f. Cash on hand. g. Promise to a vendor to buy inventory from it next period. h. Commissions earned by sales staff. i. Supplies inventory. j. Note payable, due in six months. k. Increase in fair value of land held. l. Income taxes owed to state or city government. m. Note payable, due in ten years. n. The portion of the note payable in part n that is due next year. o. Dividends declared.
Which of the following is not true regarding specific bond provisions?
a. Firms might issue bonds based only on their credit worthiness as an entity. b. Particular collateral might back up bonds issued by a firm. c. Unsecured borrowing might carry senior rights or subordinated rights in the event of bankruptcy. d. Senior debt holders have a higher priority for payment in the event of bankruptcy than subordinated (junior) unsecured lenders. e. Common stockholders have a higher priority than unsecured bondholders for payment in the event of bankruptcy.