Under US GAAP, interest paid is most likely included in which of the following cash flow activities?
A. Financing only
B. Either operating or financing
C. Operating only
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A corporate manager pursuing a low-cost strategy will most likely:
A. Have strong market research teams for product development and marketing.
B. Invest in productivity-improving capital equipment.
C. Engage in offering products of unique quality or type.
Compared with using the FIFO (first in, first out) method to account for inventory, during a period of rising prices, which of the following is most likely higher for a company using LIFO (last in, fi
A. Current ratio
B. Inventory turnover
C. Gross margin
Which of the following is most likely a sign of a good corporate governance structure?
A. The chief executive position is separate from the chair position on the companys board.
B. Independent board members comprise a minority proportion of the companys board.
C. Independent board members are allowed to meet shareholders only in the presence of the entire board.
A BBB rated corporation wishes to issue debt to finance its operations at the lowest cost possible. If it decides to sell a pool of receivables into a special purpose vehicle (SPV), its primary motiva
A. Receive a guaranty from the SPV to improve the corporations credit rating.
B. Allow the corporation to retain a first lien on the assets of the SPV.
C. Segregate the assets into a bankruptcy-remote entity for bondholders.