The credit rating assigned to a bond reflects the probability that:
A. the bond's face value will increase above its market value.
B. the bond will go into default.
C. the company will earn extremely high returns on its bond's sinking fund investments.
D. the bond's maturity value will become lower than its principal value.
E. the firm will exercise a call provision on the bond.
Answer: B
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When each element of information supports the user's decision or task, the output is said to possess
a. completeness b. summarization c. conciseness d. relevance
In which order are the accounts listed in the chart of accounts?
A) assets, expenses, liabilities, owners' equity, revenues B) owners' equity, assets, liabilities, revenues, expenses C) assets, liabilities, owner' equity, revenues, expenses D) assets, liabilities, revenues, expenses, owners' equity
A proof of claim is not required to be filed by a secured creditor
Indicate whether the statement is true or false
Gerwin's daughter Mary was seeking a position as an associate attorney with Baker, Charles & Dixon, a large metropolitan law firm. The firm, after several meetings with Mary over a two-month period, made Mary an offer of employment on January 15. Mary
accepted the offer that day and immediately left for Cape Cod to celebrate without telling Gerwin or anyone else about her new job. On January 17, two days after Mary had accepted the offer, Gerwin sent Baker, Charles & Dixon a letter in which she offered to give Baker all of her legal business (approximately $40,000 per year) if the law firm would hire Mary. The law firm accepted. After Gerwin learned that Mary already had been hired by Baker, Charles & Dixon, Gerwin refused to transfer her business to the law firm. The law firm has brought suit against Gerwin on the grounds that a valid contract exists between them. How will the case be decided?