Which of the Following Is Not an Instance of "Insider

question 24

Multiple Choice

Which of the following is not an instance of "insider trading"?

• A) An auditor using nonpublic information about the company to invest in its stock.
• B) A marketing executive briefing stock analysts on the company's sales performance.
• C) The CEO's cousin buying stock after the CEO mentioned a pending offer to buy the company.
• D) A stock broker passing an "inside tip" to a client, but not trading for his or her own account.

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Definitions:

n/30

A payment term indicating that an invoice is due within 30 days after the invoice date, with no discount for early payment.

Periodic Inventory

A method of inventory valuation in which the inventory is physically counted at specific intervals, and the cost of goods sold is calculated at the end of the accounting period.

Physical Count

A procedure conducted to verify the actual quantity of items or materials present in inventory, typically performed at the end of an accounting period.

Operating Cycles

The period of time it takes for a company to purchase inventory, sell it to customers, and collect the cash from the sales.