The expectations hypothesis states that investors
A) require higher long-term interest rates today if they expect higher inflation rates in the future.
B) expect higher long-term interest rates because of the lack of liquidity for long-term bonds.
C) require the real rate of return to rise in direct proportion to the length of time to maturity.
D) normally expect the yield curve to be downsloping.
Answer: A
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One might infer from a debit balance in Allowance for Uncollectible Accounts that
a. a posting error has been made. b. Uncollectible Accounts Expense has been overestimated. c. the accounts receivable aging method apparently is being used. d. more has been written off than had been estimated.
Shareholders cannot seek an injunction against an ultra vires act by a corporation
Indicate whether the statement is true or false
ClearCall Corporation makes phones, which are sold to consumers by DefDeals stores. Erna files a product liabil-ity suit against ClearCall, alleging a design defect. In deciding whether to hold ClearCall liable, the court may consider A) Erna's intended use for the phone
B) DefDeals' method of accounting. C) ClearCall's quality control efforts. D) an available alternative design.
A document that shows a company's assets, liabilities, and owners' equity at a given point in time is: a. an income statement
b. a balance sheet. c. a cash flow statement. d. a horizontal analysis.