A durable power of attorney preserves the authority of an agent when the principal becomes incapacitated.

Which of the following is the best definition of float?

A) The difference between book cash and bank cash, representing the net effect of cheques in the process of clearing.
B) A strategy in which an investor purchases securities to own them on the day of record and then quickly sells them; designed to attain dividends but avoid the risk of a lengthy hold.
C) Bank makes proceeds of cheques deposited available the same day before cheques clear.
D) The need to hold cash as a safety margin to act as a financial reserve.
E) Special post office boxes set up to intercept and speed up accounts receivable payments.

The Accumulated Depreciation account represents a cash fund available to replace property, plant, and equipment.

Ran is a surety for Su's loan from Tempo Credit. When Su pays the debt owed to the lender, Ran's right of subrogation entitles the surety to

A) any right that the creditor had against the debtor.
B) a proportionate share of any overpayment due to the loan's prepayment.
C) all outlays made on behalf of the suretyship arrangement.
D) title to and possession of the property serving as collateral for the loan.

Gain on sale of investments

A) Increase cash from operating activities
B) Decrease cash from operating activities
C) Increase cash from investing activities
D) Decrease cash from investing activities
E) Increase cash from financing activities
F) Decrease cash from financing activities
G) Noncash investing and financing supplement

The trait approach focuses primarily on the leader,not on the followers or the situation.

Ignoring risk in capital budgeting can lead to incorrect decisions and change the risk character of the firm.