When a bank's assets are sold to settle debt during a bank failure, what happens to the resulting gain?
A) Remaining funds are added to the insurance deposit funds.
B) Remaining funds are deducted to those paid by the insurance deposit funds.
C) Remaining funds are used to buy and consolidate smaller banks.
D) Remaining funds are dispersed to depositors to help offset losses.
E) Remaining funds are returned to the bank to aid in recovery.
Answer: A
Explanation: A) The resulting net gain (or loss) is put into (or paid from) the insurance deposit fund.
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A public company has a book value of $128 million. They have 20 million shares outstanding, with a market price of $4 per share. Which of the following statements is true regarding this company?
A) Investors may consider this firm to be a growth company. B) Investors believe the company's assets are not likely to be profitable since its market value is worth less than its book value. C) The firm's market value is more than its book value. D) The value of the firm's assets is greater than their liquidation value.
The high-low method allows you to differentiate between fixed and variable costs when dealing with mixed costs
Indicate whether the statement is true or false