When does the liquidation basis of accounting first have to be applied to financial statements of a liquidating entity to be viewed as in conformity with U.S. GAAP?
A. When an involuntary bankruptcy petition is approved by the court.
B. When liquidation is imminent.
C. When the first asset is sold.
D. At least 90 days before the final asset is sold.
Ans: B. When liquidation is imminent.
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Cumulative default probability refers to
A. probability that a borrower will default over a specified multiyear period. B. expected maximum change in the loan rate due to a change in the risk factor on the loan. C. historic default rate experience of a bond or loan. D. expected maximum change in the loan rate due to a change in the credit premium. E. probability that a borrower will default in any given year.
Two teachers purchased art supplies for their classes. One paid $103.45 for eight large boxes of crayons. The other teacher purchased ten identical boxes for $105.55
The second teacher got more for her money because she took advantage of a quantity discount, a reduced price for buying ten or more boxes. Which element of the marketing mix most directly relates to these purchases? A) production B) profit C) price D) place E) possession