In Addition to Gaining Liquidity, Which of the Following Could

question 39

Multiple Choice

In addition to gaining liquidity, which of the following could also be considered a legitimate reason for cross-listing equity?

• A) enhance a firm's local image
• B) become more familiar with the local financial community
• C) get better local press coverage
• D) all of the above

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Definitions:

Lower-of-cost-or-market

An accounting principle that states assets should be recorded at the lower value of either its cost or its market value.

Specific Identification

An accounting method used to track and assign costs to individual inventory items.

Costing Method

An approach or procedure used to assign costs to products or services, including methods like job order costing, process costing, and activity-based costing.

Days In Inventory

A financial ratio indicating the average number of days a company takes to turn its inventory into sales, reflecting inventory management efficiency.