Hall, Inc, Enters into a Call Option Contract with Bennett Investment

question 49

Multiple Choice

Hall, Inc., enters into a call option contract with Bennett Investment Co. on January 2, 2011. This contract gives Hall the option to purchase 1,000 shares of WSM stock at $100 per share. The option expires on April 30, 2011. WSM shares are trading at $100 per share on January 2, 2011, at which time Hall pays $100 for the call option.
Using the information above, the call option would be recorded in the accounts of Hall as

• A) an asset.
• B) a liability.
• C) a gain.
• D) would not be recorded in the accounts (memorandum entry only).

Associate specific scale representations with their respective scales (e.g., quarter scale).

Understand the flexibility and constraints in text sizing for notes or items in drawings.

Distinguish between reduced and enlarged scales.

Identify the components and significance of a title block.

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Definitions:

Social Scientists

Researchers specializing in disciplines that study society and human behavior, such as sociology, psychology, and anthropology.

Cultural Adaptation

The process by which environmental pressures are addressed through changes in practices, traditions, and behaviours.

Cultural Diffusion

The spread of cultural beliefs and social activities from one group to another, involving the mixing of world cultures.

Olfactics

The scientific study of the sense of smell, including how odors are perceived, processed, and interpreted.