Which of the following is a true statement?
a. SFAC No. 5 makes clear that the concepts discussed in the conceptual framework apply to other means of disclosure in addition to financial statements.
b. SFAC No. 5 appears to deny one of the main tenets of the efficient markets hypothesis, that disclosure outside of the body of financial statements is as effective as disclosure within statements themselves.
c. SFAC No. 5 made a clear attempt to resolve the issues of recognition and measurement.
d. SFAC No. 5 was successful because it addressed measurement prior to discussing recognition.
ANSWER: B
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Which of the following is commonly associated with high-performing project teams?
A. A degree of competition among team members is encouraged B. Mistakes are viewed as opportunities for learning C. Team members are selected with similar talents to enhance cohesion D. Roles and specific responsibilities are well-defined E. Risk taking is controlled and not allowed to jeopardize the overall project
Which of the following is true of an S corporation?
A) The corporation can have no more than 100 shareholders. B) Only foreign corporations with more than 10 shareholders can be an S corporation. C) They are taxed at the corporate level. D) The corporation must be a member of an affiliated group of corporations.
Blair and Chanel are holders of common stock in Discount Retail Stores, Inc Like other holders of common stock, they have a residual position in the overall financial structure of Discount Retail, because they A) are guaranteed to receive more than the amount of their investment
B) are the last to receive returns for their investment. C) have priority to the firm's assets if it becomes insolvent. D) reside in the state of the firm's incorporation.
Due to criticisms of rating agencies following the default of many subprime products, the SEC prohibited credit rating agencies from structuring the same products that they rate
Indicate whether the statement is true or false