Answer the following statements true (T) or false (F)
1. According to Generally Accepted Accounting Principles, if the fair value of goodwill decreases below its book value, an impairment loss must be recorded.
2. A trademark should not be amortized over its useful life.
3. According to Generally Accepted Accounting Principles, goodwill must be amortized.
4. Goodwill is only recorded by an acquiring company when it purchases another company and pays more for that company than the market value of its net assets.
1. TRUE
2. FALSE
3. FALSE
4. TRUE
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Which of the following items used for resolving intra-firm comparisons is not generally disclosed?
A. Deferred tax assets related to property plant and equipment. B. Adjustments to deferred tax assets related to asset sales. C. Depreciation methodology - straight line or accelerated. D. Differences between book and tax depreciation.
Suppose 1 U.S. dollar equals 1.60 Canadian dollars in the spot market. 6-month Canadian securities have an annualized return of 6% (and thus a 6-month periodic return of 3%). 6-month U.S. securities have an annualized return of 6.5% and a periodic return of 3.25%. If interest rate parity holds, what is the U.S. dollar-Canadian dollar exchange rate in the 180-day forward market?
A. 1 U.S. dollar = 0.6235 Canadian dollars B. 1 U.S. dollar = 0.6265 Canadian dollars C. 1 U.S. dollar = 1.0000 Canadian dollars D. 1 U.S. dollar = 1.5961 Canadian dollars E. 1 U.S. dollar = 1.6039 Canadian dollars
A SWOT analysis evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies.
Answer the following statement true (T) or false (F)
At Radiant Company, the sales department is also responsible for recording cash transactions as it does not have a separate accounting department. Which internal control procedure needs strengthening?
A) assignment of responsibilities B) competent, reliable, and ethical personnel C) separation of duties D) documents