Which One of the Following Items Is Most Apt to Be

question 12

Multiple Choice

Which one of the following items is most apt to be considered material non-public information? Assume that none of this information is known publicly.

• A)Barb knows that Sue, an accounting clerk, is planning on resigning on Friday.
• B)Linda knows a new receptionist has just been hired.
• C)Wendy knows that her firm's net income is continuing to increase at a steady rate.
• D)Tracey knows her employer just received patent approval on a key new product.
• E)Maria is the chief financial officer and knows the firm intends to maintain its current dividend policy.

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Definitions:

Cost of Goods Sold

Costs directly incurred from producing goods a company sells, involving the expenses for materials and labor.

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a period, indicating the efficiency of inventory management.

Beginning Inventory

The value of goods available for sale at the start of an accounting period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor used in their production.