Which of the following statements about the loss severity distribution is correct?
A) The loss severity distribution estimates the average size of an expected loss.
B) The loss severity distribution can be used to estimate the average severity of loss if a loss occurs.
C) The loss severity distribution represents the number of losses likely to happen.
D) The loss severity distribution is measured as a percentage of loss.
B
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The LIFO conformity rule allows a company to use FIFO for financial reporting and LIFO for income taxes
Indicate whether the statement is true or false
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to the ending inventory using FIFO. DateActivitiesUnits Acquired at CostUnits Sold at RetailMay 1Beginning Inventory160 units @ $11 5Purchase225 units @ $13 10Sales 145 units @ $2115Purchase105 units @ $14 24Sales 95 units @ $22
A. $3240 B. $3355 C. $2940 D. $2800 E. $3215
In the context of the various strategies for investing in securities,which of the following is a drawback ofvalue investing?
A. It requires investors to buy expensive stocks. B. The competition to locate undervalued stocks is intense. C. Investors do not have much time for research as they need to make frequent trades. D. It requires investors to invest without knowing the discrepancies between a firm's true value and its current market price.
Which of the following is a principle of merchandise location in the warehouse?
A) Group fast-moving items together. B) Group functionally related items together. C) Group physically similar items together. D) all of the above E) none of the above