A put option is purchased when the buyer believes that the ________
A) price of underlying stock will have no effect on options
B) price of underlying stock will decrease
C) option will not be profitable
D) price of underlying stock will increase
E) price of underlying stock will remain constant
Answer: B
Explanation: The right to sell the stock at a fixed price until the expiration date is known as a put option. In a put option, the buyer believes the price of underlying stock will decline.
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When journalizing for the estimated sales? returns, there would be a debit? to:
A. Accounts Receivable. B. Sales Refunds Payable. C. Cost of Goods Sold. D. Sales Returns and Allowances.
Which of the following is the formula for calculating employee turnover?
A. Number of employees voluntarily leaving their jobs during the year/Total number of employees B. Number of positions/Total number of employees C. Number of employees fired from their jobs during the year/Number of positions D. Number of employees fired from their jobs during the year/Total number of employees E. Number of employees voluntarily leaving their jobs during the year/Number of positions
Responses can be logically inconsistent
Indicate whether the statement is true or false
In the current year, ABC Corporation had the following items of income, expense, gains, and losses:Sales$500,000Cost of sales270,000Operating expenses100,000Interest on savings account14,000Gain on sale of AT&T stock6,000Loss on sale of IBM stock15,000What is taxable income for the year?
A. $144,000 B. $150,000 C. $141,000 D. $135,000