Which of the following is not true of accounting allocations?
a. Examples include depreciation and cost of good sold.
b. They are arbitrary.
c. No method can be proved superior to another method.
d. They are not useful in providing financial information.
ANSWER: D
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Which, if any, of the following transactions will decrease a taxing jurisdiction’s ad valorem tax revenue imposed on real estate?
A. A tax holiday is granted to an out-of-state business that is searching for a new factory site. B. An abandoned church is converted to a restaurant. C. A public school is razed and turned into a city park. D. A local university sells a dormitory that will be converted for use as an apartment building. E. None of these.
Although such visions cannot be accurately measured by a specific indicator of how well they are being achieved, they do provide a fundamental statement of the ________ of an organization.
A. outstanding debt B. credibility C. expected returns and limitations D. values, aspirations, and goals
Whole life insurance is also referred to as
A) endowment life insurance. B) universal life insurance. C) group life insurance. D) permanent insurance.
According to the text, many investment advisors recommend ________% of foreign stocks for a diversified portfolio
A) 0 B) 10 C) 20 D) 30