An exponential smoothing model with an alpha equal to 1.00 is the same as a naive forecasting model

Indicate whether the statement is true or false


TRUE

Business

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The allowance for doubtful accounts will not be precise by either the client or the auditor because of which of the following reasons?

a. It is an accounting estimate based upon judgment. b. GAAP is not clear on the calculation of the allowance. c. It is merely a reserve that is reversed by the client as income is needed for profitable results. d. The precision is determined by the results of confirmation responses.

Business

Affirmative action programs are often found to be unconstitutional because they deprive members of protected classes of equal protection.

Answer the following statement true (T) or false (F)

Business

The amount of depletion expense is determined by ________

a. multiplying the quantity extracted during the period by the depletion rate b. dividing the cost of the mineral deposit by the number of years estimated it will take to extract all the natural resources c. dividing the quantity extracted during the period by the depletion rate d. dividing the cost of the mineral deposit by its estimated size

Business

Barker Corp. has a beta of 1.10, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the market risk premium is 4.70%. What is Barker's required rate of return?

A. 9.43% B. 9.67% C. 9.92% D. 10.17% E. 10.42%

Business