The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is
A. joint.
B. economically stable.
C. derived.
D. inelastic.
E. more fluctuating.
Answer: C
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What is the name given to a security arrangement in which all the personal property of the business are pledged as collateral?
A) general security agreement B) mortgage C) chattel mortgage D) personal property security arrangement E) conditional sale
Structured decisions
A. are usually tactical management decisions B. require the use of an organization's AIS system C. are relatively routine and repetitive D. all of the choices are correct
On May 1, 2018, Mosby Company received an order to sell a machine to a customer in Canada at a price of 2,000,000 Mexican pesos. The machine was shipped and payment was received on March 1, 2019. On May 1, 2018, Mosby purchased a put option giving it the right to sell 2,000,000 pesos on March 1, 2019 at a price of $190,000. Mosby properly designates the option as a fair value hedge of the peso firm commitment. The option cost $3,000 and had a fair value of $3,200 on December 31, 2018. The following spot exchange rates apply:DateSpot RateMay 1, 2018$0.095 December 31, 2018 0.094 March 1, 2019 0.089 ??Mosby's incremental borrowing rate is 12 percent, and the present value factor for two months at a 12 percent annual rate is .9803.?What was the overall result of having entered
into this hedge of exposure to foreign exchange risk? A. $9,000 net gain on the option. B. $2,000 net gain on the option. C. $9,000 net loss on the option. D. $0. E. $2,000 net loss.
Answer the following statements true (T) or false (F)
1. S status can be elected if shareholders holding the majority of the stock consent to the S corporation election on the date of the S corporation election. 2. Voluntary revocation of an S corporation election is permitted only if consent is obtained from all shareholders. 3. Separately stated items are allocated to the S corporation shareholders based on the number of shares of stock owned on the last day of the S corporation's taxable year. 4. A shareholder's basis for the S corporation stock is adjusted for ordinary income or loss and separately stated items that flow through to the shareholders as well as for additional capital contributions by shareholders and distributions to shareholders. 5. A shareholder's deduction for ordinary losses and separately stated items cannot exceed his basis for the S corporation stock plus the debt basis for the shareholder loans made to the corporation and corporate-level liabilities personally guaranteed by the shareholder.