When the effective interest method of amortization is used, the amount of interest expense for a given period is calculated by multiplying the face rate of interest by the bond's carrying value at the beginning of the given period
Indicate whether the statement is true or false
False
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The EPA has mandated that, in order to reduce local pollution, your printing plant switch from oil-based to water-based inks. This will require entirely new printing presses and a new printing plate technology
After carefully searching through numerous manufacturers' equipment descriptions and gathering opinions from all relevant parties related to the work, the printing plant's buying center will be ready to make this ________ purchase. A) modified rebuy B) new task C) straight rebuy D) straight task E) situational analysis
Long-lived assets with extremely long useful lives, such as land and works of art, are treated as having an indefinite life
Indicate whether the statement is true or false
U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true?
a. The criteria attempt to identify the entity, whether lessor or lessee, that enjoys the benefits and incurs the risk of the leased asset. b. When the lessor enjoys the benefits and bears the risk, the lease is an operating lease. c. When the lessee enjoys the benefits and bears the risk, the lease is a capital lease. d. IFRS provides more specific criteria for identifying the entity enjoying the rewards and incurring the risk. e. Firms cannot currently apply the fair value option to capital leases.
A receiver's reaction to a message is strongly influenced by
a. an emphatic beginning sentence or ending sentence. b. the sequence of the ideas presented. c. both A and B. d. none of the above.