Cotton Products Corporation is a public company whose shares are traded in the public securities markets. With respect to financial and other significant information concerning its securities, the Securities Act of 1933
a. imposes increased responsibility on chief corporate executives.
b. prevents insiders from trading among themselves.
c. requires disclosure.
d. creates a "safe harbor" for companies to make forward-looking statements.
C
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Key characteristics of the Anglo Saxon model market system consists of private ownership and:
A) "social partners" orientation. B) inflexible employment policies. C) free enterprise economy. D) mix of state ownership. E) generous social safety net.
Presently, no regulatory agency, such as the Securities and Exchange Commission or the Financial Accounting Standards Board, accepts responsibility for determining either the content of financial ratios or the format of presentation in annual reports
Indicate whether the statement is true or false
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:•Sales are budgeted at $340,000 for November, $320,000 for December, and $310,000 for January. •Collections are expected to be 80% in the month of sale and 20% in the month following the sale. •The cost of goods sold is 75% of sales. •The company would like to maintain ending merchandise inventories equal to 60% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. •Other monthly expenses to be paid in cash are $24,000. •Monthly depreciation is $15,000. •Ignore taxes. Balance SheetOctober 31Assets Cash$20,000Accounts receivable 70,000Merchandise inventory 153,000Property, plant and equipment,
net of $572,000 accumulated depreciation 1,094,000Total assets$ 1,337,000 Liabilities and Stockholders' Equity Accounts payable$254,000Common stock 820,000Retained earnings 263,000Total liabilities and stockholders' equity$ 1,337,000The cost of December merchandise purchases would be: A. $255,000 B. $240,000 C. $139,500 D. $235,500
Changes in the general economy, like changes in interest rates or tax laws, represent what type of
risk? A) unsystematic risk B) company-unique risk C) market risk D) diversifiable risk