A capital budget covers a month's time, and it can only be reflected six months into the future
Indicate whether the statement is true or false.
Answer: FALSE
Explanation: A capital budget covers a year's time, and it can be reflected years into the future.
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Which of the following terms describes procedures designed to detect material misstatements in accounts?
a. Substantive procedures. b. Control Tests c. Risk assessment procedures d. Business risk procedures.
Southern Security makes safes for storing valuables. When Ed sold safes for the company, he sometimes told a prospect, "The model safe you are looking at is on sale this week. If you wait until next week to buy, you will spend $100 more
" When Ed used this approach, he was using the ________ close. A) canned B) standing-room-only C) assumptive D) minor points E) stimulus-response
Which of the following is an adequate reason for choosing passive voice?
a. To emphasize the "you" focus b. To avoid assessing blame c. To make the sentence more emphatic d. To make the sentence more descriptive
In a business combination where a subsidiary retains its incorporation and which is accounted for under the acquisition method, how should stock issuance costs and direct combination costs be treated?
A. Stock issuance costs and direct combination costs are expensed as incurred. B. Direct combination costs are ignored, and the stock issuance costs result in a reduction to additional paid-in capital. C. Direct combination costs are expensed as incurred and stock issuance costs result in a reduction to additional paid-in capital. D. Both reduce additional paid-in capital. E. Both are treated as part of the acquisition consideration transferred.