Marketable securities are purchased when excess cash is temporarily available and sold when cash
is needed.
Indicate whether the statement is true or false
TRUE
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The true drivers of a firm increased market share include all but which of the following?
a. Speed of delivery. b. An increase in residual income. c. Service quality. d. Reputation relative to the competetion.
Which one of the following statements is TRUE?
A. An agency problem occurs when an owner/manager sells stock to an outsider but continues to consume perquisites. B. Firms borrowing money have greater flexibility to use that money when there are debt covenants. C. When lenders protect themselves from the risk of asset switching by raising the interest rate, the firm's WACC can decrease. D. A lender calling in a corporate loan and then lending the funds out to a safer borrower is an example of asset switching. E. A supplier substituting a lower-quality raw material without approval is an example of asset switching.
Bart, the owner of Clear Cut Corporation, signs an instrument that includes the phrase "payment for this note will be made from the proceeds of next year's timber sale." This instrument is A) negotiable
B) notnegotiable, because payment can be made only out of a particular source. C) notnegotiable, because it states an express condition to payment. D) notnegotiable, because the reasons for the note are not clear on its face.
Sales discounts do not affect a company's gross margin.
Answer the following statement true (T) or false (F)