Answer the following statement(s) true (T) or false (F)
1. Generally speaking, the higher the risk of a security, the lower its rate of return.
2. The rate of return on a security is the dollar value of the interest earned (or dividends received) divided by the book value of the security.
3. People who want liquidity should invest in stable investments such as blue-chips.
4. People who want liquidity should invest in speculative investments such as nuclear medicine.
5. Many government securities are tax-free and have a slightly lower rate of return than fully taxable investments.
1. FALSE
2. FALSE
3. TRUE
4. FALSE
5. TRUE
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On July 1, 2016, American Stereo purchased stereo equipment for $5,000. The estimated life of the equipment was ten years and the residual value was estimated to be $2,000. Double-declining-balance depreciation was used. If calculations are based on the nearest whole month, depreciation expense for the year 2018 was
A) $720 B) $900 C) $640 D) $800
If legally allowed, during periods of rising inventory values, a retailer using the FIFO (first-in-first-out) method could reduce its tax liability by _____
a. using the cost method of retail accounting b. maintaining a book inventory c. calculating deductions from retail value d. switching to LIFO
Crafted Countertops, Inc., and Kitchen Design Corporation enter into a contract that does not specify the payment terms. Payment may be made in
A. any commercially normal or acceptable means except credit card. B. cash only. C. any commercially normal or acceptable means. D. cash or check only.
If a creditor believes that a debtor may sell or transfer assets, the creditor may ask the court to ____________________ the assets and hold them until a judgment is obtained
Fill in the blank(s) with correct word