List and briefly discuss three accounting concepts and principles that apply to accrual basis accounting
What will be an ideal response
1. Time period concept — A business's activities can be sliced into small time segments and financial statements can be prepared for specific periods of time.
2. Revenue recognition principle — Revenue is recorded when it has been earned.
3. Matching principle — Expenses are matched against the revenues of the period. This ensures that all expenses are recorded when they are incurred.
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A four-year corporate bond with a 7% coupon has a Z-spread of 200 bps. Assume a flat yield curve with an interest rate for all maturities of 5% and annual compounding. The bond will most likely sell:
A. close to par. B. at a premium to par. C. at a discount to par.
Which of the following is true for customer satisfaction?
A) Satisfaction is a deeply held commitment to rebuy or repatronize a preferred product despite situational influences. B) Consumers often form more favorable perceptions of a product with a brand that is new. C) The ultimate goal of a customer-centered firm is to create high customer satisfaction. D) Only increased customer satisfaction can help a company increase its profits. E) Greater customer satisfaction has also been linked to higher returns and lower risk in the stock market.