The accounting concept or principle that is perhaps the greatest single culprit in distorting the results of financial statement analysis is the:
A. Historic cost principle.
B. Time value of money concept.
C. Conservatism concept.
D. Matching principle.
Answer: A
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As with other assets, the cost of a bond investment includes all costs related to the purchase
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of an ultimate consumer?
A. an office receptionist who renews the magazines that are found in the office waiting room B. a landscaping firm employee who buys a new wheelbarrow to use to haul mulch C. a newspaper reporter who receives a plane ticket to Washington, D.C. to cover the presidential inauguration D. a retailer who buys poster board to make signs for an upcoming store sale E. a school teacher who bought a ticket to the Summer Olympics opening ceremonies
In a competitive interaction, a low level of concern for other's objectives may cause negotiators to attempt to block the other from obtaining their objectives due to a strong desire to win or to defeat the opponent.
Answer the following statement true (T) or false (F)
The CEO of Big Ships knows his company has won a $2 billion contract to build ships for the Navy. He is told by the Navy to keep this quiet until the official announcement. Knowing that Big Ships stock will rise when the announcement is made, he tells his children to buy as much Big Ships stock as they can right away. He does not buy any stock. The CEO may:
a. not be sued for insider trading since he did not engage in trades; his relatives can be sued b. not be sued for insider trading because he did not engage in trades; his relatives may not be sued because they have no relation to the company c. not be sued for insider trading under the Supreme Court rule in the Dirks case d. be sued for insider trading because he gave out inside information he had a fiduciary duty to keep secret e. be sued only if his employment contract or contract with the Navy prohibits trading