The fair value method is used to account for available-for-sale investments because they are normally sold in the near future at their current market value
Indicate whether the statement is true or false
TRUE
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Social responsibility is
A. the view that organizations should satisfy the needs of consumers in a way that provides for society's well-being. B. the idea that individuals and organizations are accountable to a larger society. C. the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth. D. the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals. E. the fundamental, passionate, and enduring principles of an organization that guide its conduct over time.
During its first year of operations, 2016, the Cocoa Company reported both a pretax financial and a taxable loss of $300,000. The income tax rate is 30% for the current and future years. Due to a sufficient backlog of sales orders, Cocoa did not establish a valuation allowance to reduce the $90,000 deferred tax asset. However, early in 2017, one major customer, representing 60% of the 2017
year-end sales backlog, went bankrupt. Cocoa now believes that it is more likely than not that 75% of the deferred tax asset will not be realized. The entry to record the valuation allowance would be A) Income Tax Expense 67,500Deferred Tax Asset 67,500 B) Income Tax Benefit from OperatingLoss Carryforward 67,500Deferred Tax Asset 67,500 C) Income Tax Expense 67,500Allowance to Reduce DeferredTax Asset to Realizable Value 67,500 D) Allowance to Reduce Deferred TaxAsset to Realizable Value 67,500Income Tax Expense 67,500
For a limited and short-term MPR campaign, marketers can personally monitor each medium and communicate with connectors to measure media mentions
Indicate whether the statement is true or false
Phil believes that the dealership should lower car prices to capture a higher share of the market. Which statement best supports Phil's argument?
A) Short-term profits will not be affected by lower prices if a firm is an e-retailer. B) Competitors will lower prices to gain market share, and a price war will ensue. C) Firms with large market shares are publicly owned but less strictly monitored. D) A temporary reduction in profits could lead to long-term future profits because of greater market share. E) A company with the largest share of the market can cut costs and raise prices without the public noticing or switching to competitors.