题目内容

If a company is investing in new assets, using straight-line depreciation instead of accelerated depreciation in the early years of an asset’ s life will lead to lower: ()

A. assets and higher net income.
B. turnover ratios and higher assets.
C. return on equity and higher cash flow.

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Which of the following statement about temporary and permanent differences is FALSE()

A. Permanent differences are differences in taxable and pretax income that never reverse.
B. Temporary differences are differences in taxable and pretax income that reverse in future years.
C. Both temporary and permanent differences result in deferred tax consequences.

Which of the following statements best justifies analyst scrutiny of valuation allowances()

A. If differences in taxable and pretax incomes are never expected to reverse, a company’ s equity may be understated.
B. Increases in valuation allowances may be a signal that management expects earnings to improve in the future.
Changes in valuation allowances can be used to manage reported net income.

Determine the Cost of Goods Sold using the Weighted Average Method and also using the First in First Out (FIFO) Method. Weighted Average FIFO ①A. $ 4986.02 $ 4133.45 ②B. $ 5248.44 $ 4351. 00 ③C. $ 4351.00 $ 5248.44

A.

A. ①

B.
B. ②

C.
C.③

Yamaska Mining issued a. 5-year, $ 50 million face,6% semiannual bond when market interest rates were at 7%. What is the initial balance sheet liability and what is the cumulative interest expense (in dollars) that the company should report following the first half of the second year of the bond’s life (the third semiannual period) Initial liability Cumulative interest expense to end of first half of year 2 ①A. $ 47920849 $4500000 ②B. $ 47920849 $ 5051494 ③C. $ 50000000 $ 9000000

A.

A. ①

B.
B. ②

C.
C. ③

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