When stock is issued for a noncash asset, the par value of the stock is the best indicator of the value of the asset

a. True
b. False

Indicate whether the statement is true or false


False

Business

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A customer's desire for a product coupled with the buying power or resources to obtain that product is called a ________

A) benefit B) demand C) need D) stake E) service

Business

The Service Revenue account is a temporary account

Indicate whether the statement is true or false

Business

A riskless hedge can best be defined as

A. A situation in which aggregate risk can be reduced by derivatives transactions between two parties. B. A hedge in which an investor buys a stock and simultaneously sells a call option on that stock and ends up with a riskless position. C. Standardized contracts that are traded on exchanges and are "marked to market" daily, but where physical delivery of the underlying asset is virtually never taken. D. Two parties agree to exchange obligations to make specified payment streams. E. Simultaneously buying and selling a call option with the same exercise price.

Business

One goal of mortgage financing should be selecting the type of mortgage that results in the highest interest expense

Indicate whether the statement is true or false.

Business