On the date of initial issuance of a financial instrument , the market value will equal
a. the initial issue proceeds [the amount borrowed].
b. the sum of the future cash flows.
c. the maturity value of the instrument.
d. the par value of the instrument.
e. the par value of the instrument minus the premium or plus a discount.
A
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Which of the following is a similarity between letters and memos?
A. Both are formal ways of sending a written message. B. Both can only be sent electronically. C. Both take a relatively long time to prepare and deliver. D. Both can only be used for lateral communication.
Clemente Co. owned all of the voting common stock of Snider Co. On January 2, 2017, Clemente sold equipment to Snider for $125,000. The equipment cost Clemente $140,000. At the time of the transfer, the balance in accumulated depreciation was $40,000. The equipment had a remaining useful life of five years and a $0 salvage value. Both entities use the straight-line method of depreciation.At what amount should the equipment (net of depreciation) be included in the consolidated balance sheet dated December 31, 2018?
A. $110,000. B. $ 90,000. C. $ 60,000. D. $105,000. E. $100,000.
Compensation plans may need to vary depending on the type of salespersons. Which type of salesperson benefits from consistent quarterly bonuses and social pressure?
A) stars B) core performers C) dogs D) cash cows E) laggards
If the equilibrium price of gasoline is $2.75 per gallon and the government will not allow oil companies to charge more than $2.00 per gallon of gasoline, which of the following will happen?
A) Demand must eventually decrease so that the market will come into equilibrium at a price of $2.00. B) Supply must eventually increase so that the market will come into equilibrium at a price of $2.00. C) Total surplus in the market will be lower than it would be if the price was $2.75 per gallon. D) The market will be in equilibrium at a price of $2.00.