Which of the following is not true regarding SFAS No. 142?
a. Goodwill may be defined as the excess earning power of an acquisition.
b. Goodwill is defined as the difference between the amount paid for an acquired subsidiary and the fair market value of its individual net assets.
c. Tests of goodwill impairment must be made on an annual basis.
d. Because goodwill has an indefinite life, it is not subject to write-off as an expense.
ANSWER: D
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John loans George money, and they sign a written agreement whereby George will repay John in monthly installments. Is this loan subject to the Truth in Lending Act?
A. Yes, if the loan is for more than $1,000. B. Yes, if John and George live in different states. C. No, if John is not in the business of offering credit. D. No, if John and George are related.
Which of the following statements about mobile phone usage is true?
A) Mobile phone usage is more in younger people than older people. B) Most of the youngsters between the ages of 18 and 29 do not use text messaging. C) A large majority of the American population access Internet using mobile phones. D) Majority of elders (65+) use mobile phones to listen to music.
If a subsidiary issues a stock dividend, which of the following statements is true?
A. Additional paid-in capital on the parent's books will increase. B. No adjustment is necessary. C. Investment in subsidiary on the parent's books will decrease. D. Investment in subsidiary on the parent's books will increase. E. Additional paid-in capital on the parent's books will decrease.
United Sales Corporation hires Victor to act as its agent. United's right not to perform a contract entered into by Victor, if Victor breaches their agency agreement, is the right of
A. avoidance. B. indemnification. C. nullification. D. termination.