Which of the following is not a correct statement regarding deferred tax asset valuation allowance?
A. Companies without a history of profitability may generate negative income tax expense in the year they first generate a profit if they have a valuation allowance that is reversed in the year of profitability.
B. Profitable companies will never have valuation allowances against deferred tax assets.
C. If a deferred tax asset may not be fully realized in future periods, a valuation allowance is required to reduce the asset to the amount that is more likely than not to be realized.
D. The determination of whether or not a valuation allowance is necessary is based on subjective assessment.
Answer: B
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A) Singapore B) Thailand C) India D) Philippines E) Brunei
The preparation of financial statements requires that the information be understandable
a. Only to CPAs. b. To those willing to spend the time to understand it. c. Only to those who take an accounting course. d. Only to financial analysts and brokers.
Which of the following statements does not describe the benefits of utilizing distribution centers over direct store delivery?
A. The effects of forecast error for the individual stores are minimized and less backup inventory is needed to prevent stockouts. B. The use of distribution centers increases inventory investment. C. It is easier to avoid running out of stock or having too much stock in any particular store because merchandise is ordered from the distribution center as needed. D. More accurate sales forecasts are possible when retailers combine forecasts for many stores serviced by one distribution center rather than doing a forecast for each store. E. Distribution centers enable the retailer to carry less merchandise in the individual stores.
When managing misperceptions and cognitive biases in negotiation, several decision traps can occur. Describe and give an example of the decision trap of shooting from the hip.
What will be an ideal response?