In general, a cost incurred in conjunction with a long-term asset is included in the long-term asset account when the cost
a. is incurred subsequent to asset use.
b. exceeds a certain dollar amount.
c. is incurred prior to asset use.
d. will expire in less than one year.
C
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Which of the following must exist before a shareholder can bring a derivative action?
A. The shareholder should not be an employee of the firm. B. The shareholder must have owned shares at the time of the wrong against the corporation. C. The shareholder must also be an officer or director. D. A majority of the common shareholders must support the action.
A list of tables, list of graphs, list of appendices, and list of exhibits are found in which part of the marketing research report?
A) table of contents B) letter of transmittal C) letter of authorization D) executive summary
Discuss the concept of total quality management
Which of the following is/are not true?
a. A derivative is a financial instrument whose value changes in response to changes in an underlying observable variable, such as a stock price, an interest rate, a currency exchange rate, or a commodity price. b. Unlike equity securities, which have no definite settlement date, firms settle a derivative at a date that the terms of the instrument specify. c. A derivative requires an investment that is small, relative to the investment in a contract that is similarly exposed to changes in market factors, or requires no investment at all. d. Firms use derivative instruments to hedge the risks that arise from changes in interest rates, foreign exchange rates, and commodity prices. e. The general idea behind hedging is that changes in the fair value of the derivative instrument map the changes in the fair value of an asset or liability or changes in future cash flows, thereby multiplying the effects of those changes.