Although most accountants believe that the use of present value creates relevant accounting measurements, there are some reliability questions. Discuss the reasons why present value computations create less reliable measurements.
What will be an ideal response?
Reliability questions exist with present value calculations because they require the
| a. | estimation of the future cash flows, including the timing, amount, and risk of those cash flows |
| b. | estimation of the interest rate |
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On June 1,2016, Molser Company acquired a new machine by agreeing to pay five equal annual payments of $20,000, with the first payment due that day. Assuming an interest rate of 14% compounded annually, Molser should record the acquisition cost of the machine as
A. $68,662. B. $78,274. C. $87,719. D. $100,000.
Solve the problem. Refer to the table if necessary.
Your deductible expenditures $5238 for contributions to charity and $646 for state income taxes. Your filing status entitles you to a standard deduction of $6350. Should you itemize your deductions rather than claiming the standard deduction? If so, what is the difference?
A. Yes, $1758 B. Yes, $5884 C. Yes, $466 D. No, you are better off with the standard deduction.
Which approach builds on Piaget's ideas, and views cognition as composed of different types of individual skills, while integrating terminology from information-processing approaches?
A. neo-Piagetian B. parallel processing approach C. social-cognitive learning theory D. cognitive perspective
In order to learn about toy preferences, Dr. Mackinac interviews children at a local preschool and uses their responses to guide her conclusions about children's toy preferences in general. This is an example of what type of research?
A. experimental B. ethnography C. case study D. survey