There are two main reasons why we need to deal with depreciation. Which of the below is one of these reasons? A) The gain but not the loss when a capital asset is disposed B) The loss but not the gain when a capital asset is disposed C) The tax flow implications from the OCF […]
Date: September 19th, 2020
________ is the process of “expiring” the cost of a long-term tangible asset over its useful life. A) Expiration B) Depreciation C) Economic recovery D) Salvaging ANSWER Answer: B
Date: September 19th, 2020
When considering fixed operating cost increases, a financial manager must weigh the increased financial risk associated with greater operating leverage against the expected increase in returns. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A terminal warehouse is ________. A) a warehouse located beyond city limits for storing the merchandise B) a warehouse on the borrower’s premises to store the merchandise C) a central warehouse storing the merchandise of various customers D) a warehouse located near the lender’s home for storing the merchandise ANSWER C
Date: September 19th, 2020
Which of the methods below is a way to allocate depreciation? A) The allocation each year is the amount of cost as determined by the actual estimated usage for that year. B) Use the government-mandated accelerated depreciation system, which depreciates the capital asset at the minimum accelerated amount allowed each year. C) The allocation each […]
Date: September 19th, 2020
As Akerlof argues, sellers who have a lemon, of course, know they have lemon but are not willing to tell the truth about the condition of their auto and, for the short selling period involved, can put their auto in a satisfactory condition that approximates the normal condition of the auto that are not lemons. […]
Date: September 19th, 2020
Profits can be defined as an accounting measure of performance during a specific period of time. Indicate whether the statement is true or false. ANSWER Answer: TRUE
Date: September 19th, 2020
Appropriate collateral for a loan secured under a floating inventory lien is ________. A) cars B) granite slabs C) air conditioners D) paper clips ANSWER D
Date: September 19th, 2020
On a corporate income statement, interest is paid after taxes are paid. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: On a corporate income statement, interest is paid BEFORE taxes are paid.
Date: September 19th, 2020
Under the floating inventory lien, the borrower is free to sell the merchandise and is expected to remit the amount lent against each item, along with accrued interest, to the lender immediately after the sale. The lender then releases the lien on the appropriate item. Indicate whether the statement is true or false […]
Date: September 19th, 2020
