Special purpose entities (SPE) are:
a. a type of illegal maneuver used by Enron to hide losses.
b. business interests formed solely to accomplish a specific task or tasks.
c. independent if the company itself has 3% of its equity invested, and the equity is at risk.
d. considered independent if they are profitable and have outside bank loans.
b
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The capital intensity ratio is generally defined as follows:
A. The percentage of liabilities that increase spontaneously as a percentage of sales. B. The ratio of sales to current assets. C. The ratio of current assets to sales. D. The amount of assets required per dollar of sales, or A0*/S0. E. Sales divided by total assets, i.e., the total assets turnover ratio.
Woodgrain Products Company and Sylvia enter into a contract for a sale of lumber. Woodgrain knows the purpose for which Sylvia will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises
A. if the buyer is relying on the seller to select suitable goods. B. if the buyer asks for it. C. if the seller is a merchant who deals in goods of the kind sold. D. in conjunction with lease contracts, not sales contracts.
In the past, 35% of the students at ABC University were in the Business College, 35% of the students were in the Liberal Arts College, and 30% of the students were in the Education College. To see whether the proportions have changed, a random sample of 300 students from ABC University was selected. Ninety of the sample students are in the Business College, 120 are in the Liberal Arts College,
and 90 are in the Education College. If the proportions are the same as they were in the past, the expected frequency for the Business College is _____. a. .3 b. .35 c. 90 d. 105
Current information for the Healey Company follows: Beginning raw materials inventory$15,200 Raw material purchases 60,000 Ending raw materials inventory 16,600 Beginning work in process inventory 22,400 Ending work in process inventory 28,000 Direct labor 42,800 Total factory overhead 30,000 All raw materials used were traceable to specific units of product. Healey Company's direct materials used for the year is:
A. $76,600. B. $58,600. C. $75,200. D. $60,000. E. $61,400.