A customer is injured using a company's product. The potential liability that may result is called a(n)
a. contingent liability.
b. estimated liability.
c. definitely determinable liability.
d. estimated warranty liability.
A
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Describe an internal control procedure that would prevent an employee from punching the time clock for another, absent employee
Ann Arbor Division of the Michigan Company has the following statistics for its most recent operations: Assets available for use (Market Value) $3,600,000 Assets available for use (Book Value) $2,000,000 Ann Arbor Division's return on investment 25% Ann Arbor Division's residual income 200,000 Return on investment (entire Michigan Company) 20% Refer to Michigan Company. What is the target rate of
return in Michigan Company? a. 25% b. 20% c. 15% d. 10%
Emara Company sells two generators—Model A and Model B—for $456 and $394, respectively
The variable cost of Model A is $406 and of Model B is $304. The company will generate lower revenues but a higher net income if it sells more of Model B than Model A. Indicate whether the statement is true or false
Which of the following statements is FALSE?
A) We can access a firm's sensitivity to interest rates by examining its balance sheet. B) Just as the interest rate sensitivity of a single cash flow increases with its maturity, the interest rate sensitivity of a stream of cash flows increases with its duration. C) By restructuring the balance sheet to increase its duration, we can hedge the firm's interest rate risk. D) A firm's market capitalization is determined by the difference in the market value of its assets and its liabilities.