Which of the following is not a distinguishing characteristic of a derivative instrument?
a. Derivative instruments have terms that require or permit net settlement.
b. Derivative instruments have a low initial net investment.
c. Derivative instruments are highly effective throughout their term.
d. Derivative instruments have one or more underlyings and notional amounts.
C
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Neighborhood Lawn Equipment uses a perpetual inventory system. Journalize the following sales transactions for this company. Explanations are not required.
May 18: Sold $26,000 of merchandise on account, credit terms are 1/10, n/30, FOB destination. Cost of goods is $15,600. May 22: Neighborhood negotiated a $600 allowance on the goods sold on May 18. May 24: Neighborhood paid freight of $450 on the goods sold on May 18.
Explain the three types of responsibility centers
Cash flows to assets is computed as
A) Net cash flows from operating activities/Average total assets B) Average total assets/Net cash flows from operating activities C) Net cash flows from operating activities/Sales D) Net income/Net cash flows from operating activities
Manny has studied the job characteristics theory in his organizational behavior class. He understands that the states experienced from the nature of the work performed can translate into ______.
A. higher turnover B. higher work motivation C. higher turnover intentions D. higher grit