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NEW QUESTION: 1
The most common forms of redemption provisions found in privately held companies are as follows. Which of the following is NOT out of the common forms of redemption provisions?
A. Future redemption by the
issuing
company is mandatory
and based on a specific redemption schedule.
B. The entire issue is redeemable at the option of the issuing corporation at a specified price over a designated time period. These types of issue are commonly referred to as callable.
C. Future issues have sinking funds provisions similar to vehicle by which bonds are retired at intervals up to their maturity dates and are referred to as sinking fund preferred.
D. The entire issue is redeemable at the option of the issuing corporations at a changing price contingent upon a certain event.
Answer: D
NEW QUESTION: 2
The purpose of bail is to:
A. Take dangerous offenders off the street
B. To ensure the appearance of the accused in court
C. Make certain each accused person is offered his or her constitutional right to put up security in order to
gain release
D. None of the above
E. Confine the accused pending trial
Answer: B
NEW QUESTION: 3
The Eastern division, it sells goods internals to the Western division of the company. The quoted external price in industry publications from a supplier material near Eastern in US $ 200 per ton plus transportation. It costs US $ 20 per ton to transport the goods to Western Eastern's actual market cost per ton to buy the direct materials to make the transferred product is US $100. Actual per ton direct labor is US $50. Other actual costs of storage and handling are US $40. The company president select a US $220 transfer price. This is an example of:
A. Negotiated transfer pricing.
B. Market-bas, d transfer pricing.
C. Bost-plus-20% transfer pricing.
D. Cost-based transfer pricing.
Answer: B
Explanation:
A transfer price is the price charged by one segment of an organization for a product or service supplied to another segment of the same organization. The three basic criteria that the transfer pricing system in a decentralized company should satisfy are to 1) provide information allowing central management to evaluate divisions with respect to total company profit and each division's contribution to profit. 2) stimulate each manager's efficiency without losing each division's autonomy, and 3) motivate each divisional manager to achieve his/her own profit goal in a manner contributing to the company's success. Because the US $220 transfer price selected is based on the quoted external price market), it is an example of market-based transfer pricing.