Which of the following is NOT an example of economic capital?

A) a delivery truck used by Federal Express
B) a desk in a classroom
C) a bond issued by IBM
D) an electric plant used by a local utility to generate electricity
E) all of the above

C

Business

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The percentage-of-receivables approach of estimating uncollectible accounts emphasizes matching over valuation of accounts receivable.

a. true b. false

Business

Which of the following statements about bond rating agencies is true?

A) Bonds are rated by an agency of the federal government. B) Bonds rated AAA are guaranteed by the company that issues the rating. C) During the financial crisis of 2007-2009 it became clear that rating agencies severely underestimated the risks of some issues. D) Bond rating agencies are paid by investors and receive no compensation from the bonds' issuer.

Business