Which of the following is a characteristic of a derivative?
a. has one or more underlyings
b. has one or more notional amounts
c. exchanging of promises with a counterparty
d. all of the above
e. none of the above
D
You might also like to view...
Setting goals and deciding how to achieve them is called
A. controlling. B. managing. C. planning. D. organizing. E. leading.
The interest earned on the principal amount only is referred to as_____________
Fill in the blank(s) with correct word
Use this information to answer the following question. These facts concern the long-term stock investments of DeBord Corporation: June 1, 2014 Paid cash for the following long-term investments: 5,000 shares Vanhook Corporation common stock (representing 5 percent of outstanding stock) at $40 per share; 3,000 shares Shust Corporation common stock (representing 3 percent of outstanding stock) at
$24 per share. Dec. 31, 2014 Quoted market prices at year end: Vanhook common stock, $35; Shust common stock, $27. April 1, 2015 A change in policy required the sale of 1,000 shares of Vanhook Corporation common stock at $38. July 1, 2015 Received a cash dividend from Shust Corporation equal to $.30 per share. Dec. 31, 2015 Quoted market prices at year end: Vanhook common stock, $39; Shust common stock, $22. The entry to record the sale of 1,000 shares of Vanhook Corporation common stock is: A) Long-Term Investments 38,000 Cash 38,000 B) Long-Term Investments 38,000 Allowance to Adjust Long-Term Investments to Market 38,000 C) Allowance to Adjust Long-Term Investments to Market 38,000 Cash 38,000 D) Cash 38,000 Loss on Sale of Investments 2,000Long-Term Investments 40,000
The cost of assets acquired for a lump sum should be allocated equally among the acquired assets
Indicate whether the statement is true or false