Answer the following statements true (T) or false (F)
1. Obsolescence refers to the insufficient capacity of a company's plant assets to meet the company's growing productive demands.
2. Depreciation does not measure the decline in market value of an asset each period.
3. A plant asset'suseful life is the length of time it is productively used in a company operations.
4. It is necessary to report both the cost and the accumulated depreciation of plant assets in the financial statements.
5. Depreciation expense is calculated using its cost, estimates of an asset's salvage value, and an estimated useful life.
1. FALSE
2. TRUE
3. TRUE
4. TRUE
5. TRUE
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A budget that allocates resources on the basis of a single estimate of costs is called a(n) ______ budget.
A. unitary B. zero-based C. cash D. fixed E. incremental
Surveys show that people may prefer to deal with members of their own race. A company assigns white salespersons to white clients and Hispanic salespersons to Hispanic clients. This makes commissions to all the salespersons higher than if the sales-persons were assigned randomly. Assignments based on race are:
a. illegal disparate treatment under Title VII b. illegal only if the salespersons earn different wages c. legal if the salespersons of all races have approved the market division d. legal since the effect is to raise gross income on the affected group e. legal since the interests of the customers is the same as the interests of the firm
Which of the following is a major pollutant regulated by the Clean Air Act:
a. sulfur dioxide b. particulates c. ozone d. carbon monoxide e. all of the other specific choices are major pollutants
Which of the following is true about the functional dependency (A, B) ? (C, D)?
A) A is the determinant of C. B) A and B together are determined by C and D together. C) A and B together determine D. D) C and D together determine A.