International Corporation leased a building from Domestic Company. The 10-year lease is recorded as a capital lease. The annual payments are $10,000 and the recorded cost of the asset is $67,100. The straight-line method is used to calculate depreciation. Which of the following statements is true?
A) Depreciation expense of $6,710 will be recorded each year by International Corporation.
B) Depreciation expense of $10,000 will be recorded each year by International Corporation.
C) No depreciation expense will be recorded by International Corporation.
D) No rent expense will be recorded by International Corporation.
A
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Which of the following is true of the credit crunch that occured in the U.S. economy in the early 1990s?
A. The credit crunch affected only big business firms. B. Small business firms that were unable to obtain bank loans were most affected during the credit crunch. C. The main reason behind the credit crunch was the dramatic decline in housing prices. D. The government bailed out many of the financial firms that were affected by the credit crunch.
If a specific campaign does not break even in the short run, it will not be profitable in the long run if we factor in customer lifetime value by calculating the average customer longevity, average customer annual expenditure, and average gross
margin, minus the average cost of customer acquisition and maintenance (discounted for the opportunity cost of money). Indicate whether the statement is true or false
Cash equivalents meet all of the following criteria except:
A. Short-term investments purchased within 3 months of their maturity dates. B. Readily convertible to a known cash amount. C. More liquid than cash. D. Short-term U.S. treasury bills. E. Have a market value that is not sensitive to interest rate changes.
Once a marketing researcher is ready to move beyond preliminary insights to specific, informed questions, the researcher is ready to conduct
A. syndicated marketing surveys. B. qualitative research. C. research design. D. quantitative research. E. data warehousing.