Estimates based on the assumption that historical data can be used as a frame of reference for current estimates are:
A) Comparative estimates.
B) Ballpark estimates.
C) Definitive estimates.
D) Feasibility estimates.
A
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Peak & Vale Accountants provides other firms with accounting services. Questions of what is ethical involve the extent to which Peak & Vale has
A. a legal duty beyond those duties mandated by ethics. B. an ethical duty beyond those duties mandated by law. C. any duty beyond those mandated by both ethics and the law. D. any duty when it is uncertain whether a legal duty exists.
Insurance is available from the U.S. AID to U.S. firms against the expropriation of their property by a foreign government
Indicate whether the statement is true or false
What type of accounts have tax advantages such as an immediate tax break and a deferral of taxes on your gains, or a tax break upon withdrawal, depending on your plan?
A) Checking B) Savings C) Retirement D) Credit Cards E) Escrow
Hicks Health Clubs, Inc., expects to generate an annual EBIT of $750,000 and needs to obtain financing for $1,200,000 of assets. Its tax bracket is 40%. If the firm uses short-term debt, its rate will be 7.5%, and if it uses long-term debt, its rate will be 9%. By how much will their earnings after taxes change if they choose the more aggressive financing plan instead of the more conservative plan?
A) $10,800 B) ($10,000) C) ($6,000) D) $6,000