The Smith v. Van Gorkam decision underscores which of the following regarding statements of officers or directors?
a. An outside director, but not an inside director, may in good faith rely upon any statement of an executive officer.
b. An inside director, but not an outside director, may in good faith rely upon any statement of an executive officer.
c. Any director may in good faith rely upon any statement of an exeecutive officer.
d. Not every statement of an executive officer can be relied upon in good faith.
d
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Exhibit 22-3 Katrina Company acquired a truck on January 1, 2016, for $140,000. The truck had an estimated useful life of five years with no salvage value. Katrina used straight-line depreciation for the truck. On January 1, 2017, Katrina revises the estimated useful life of the truck. Katrina made the accounting change in 2017 to reflect the extended useful life. ? Refer to Exhibit 22-3. If
the revised estimated useful life of the truck is a total of eight years, what is the amount of depreciation expense that Katrina should report in its 2017 income statement? A) $14,000 B) $16,000 C) $17,500 D) $28,000
________ costs are independent of the volume of goods produced and remain constant
Fill in the blank with correct word.
Client interest in a project is highest during the termination and conceptual phases
Indicate whether the statement is true or false
Means by which the securities markets serve to mitigate principal-agent or information asymmetry problems include all of the following EXCEPT:
a. Management realizes that its reputation with investors is valuable, and can be sustained only if accurate information is provided on a timely basis. b. Various market mechanisms exist to discipline a firm's management, and thus to mitigate conflicts of interest between management and shareholders. One of the most powerful is the threat of a hostile takeover of the firm, after which management is fired. c. Exchanges such as the NYSE regularly publish lists of firms that appear to be overvalued because their management is poor.