If a fire destroys the merchandise inventory, the gross profit method can be used to estimate the cost of merchandise destroyed

Indicate whether the statement is true or false


True

Business

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Under IFRS, SPEs are consolidated when evidence indicates that the reporting company "controls" the SPE. Control is presumed if which of the following conditions exist? The reporting entity performs activities on behalf of the SPE.  The SPE has decision-making powers over the activities of the reporting entity.  The reporting company has exposure, or rights, to variable returns from its involvement with the investee  The reporting company has the ability to use its power over the investee to affect the amount of the firm's returns 

A. I, II, and III only. B. I and II only. C. III and IV only. D. I, II, III, and IV.

Business

Entering into a lease is an example of off-balance-sheet financing

Indicate whether the statement is true or false

Business

Ethnocentrism is inherent in all cultures

Indicate whether the statement is true or false

Business

TriColor purchased an industrial stamping machine from Vicy, Inc TriColor paid for the machine with a negotiable note. The note was payable to the order of Vicy, Inc Vicy, Inc indorsed the note and gave it to CCLoans to satisfy a debt. CCLoans knew

nothing about the contract between TriColor and Vicy, Inc CCLoans indorsed the note and gave it to Great River Youth Club as a charitable donation. When Great River Youth Club presented the note for payment on its due date, TriColor refused to pay, claiming that the stamping machine was defective. (A) Is Great River Youth Club a holder in due course? (B) Will TriColor be able to avoid liability to Great River Youth Club on the basis that the machine was defective?

Business