Multiple Choice Questions 1. At what amount is the inventory reported on Metallic Wonders' December 31, 2014,

Question:

Multiple Choice Questions
1. At what amount is the inventory reported on Metallic Wonders' December 31, 2014, balance sheet?
a. $ 905, 000
b. $ 910, 000
c. $1, 000, 000
d. $1, 250, 000
2. At what amount is the investment in futures reported on Metallic Wonders' December 31, 2014, balance sheet?
a. $90, 000 liability
b. $95, 000 asset
c. $95, 000 liability
d. $90, 000 asset
3. What is the gross margin on the February 5, 2015, sale of inventory?
a. $290, 000
b. $340, 000
c $430, 000
d. $490, 000
4. GE stock has a current market value of $15. A call option in GE stock has a of $11 and sells for $6. Which statement is false"!
a. The time value of the option is $2.
b. The call option could be hedging a company's investment in GE stock.
c. The intrinsic value of the option is $4.
d. If the market price of GE stock falls, the option will be less valuable.
Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.