The CEO of Big Ships knows his company has won a $2 billion contract to build ships for the Navy. He is told by the Navy to keep this quiet until the official announcement. Knowing that Big Ships stock will rise when the announcement is made, he tells his children to buy as much Big Ships stock as they can right away. He does not buy any stock. The CEO may:
a. not be sued for insider trading since he did not engage in trades; his relatives can be sued
b. not be sued for insider trading because he did not engage in trades; his relatives may not be sued because they have no relation to the company
c. not be sued for insider trading under the Supreme Court rule in the Dirks case
d. be sued for insider trading because he gave out inside information he had a fiduciary duty to keep secret e. be sued only if his employment contract or contract with the Navy prohibits trading
d
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During its first three years of operations a company reported pre-tax book income of $1,000,000 in year 1, ($1,800,000) in year 2, and $3,000,000 in year 3. The income tax rate applicable to each of the years was 40%.Assume that there weren't any temporary differences and a valuation allowance was not necessary.What amount of income tax expense was reported in year 3 if the company elected a loss carryback?
A. $ 480,000 B. $ 880,000 C. $ 400,000 D. $1,200,000
You are a new employee at the accounting firm Murray & Murray, CPAs. Before you are assigned to your first audit, your supervisor tests your knowledge and asks you to explain the term "scope" in the context of a financial statement audit.Required:A. Provide a definition of scope.B. Describe what influences an auditor's determination of scope.
What will be an ideal response?
Describe the leader–member exchange model. Explain how following this model can help managers become more effective leaders.
What will be an ideal response?
Which of the following financial statements is concerned with the enterprise at a point in time?
A) Statement of retained earnings B) Income statement C) Statement of cash flows D) Balance sheet