Which of the following are possible sources of abnormal earnings?
a. Recognizing the positive excess present value above the cost of a project on the balance sheet
b. The use of current values in reporting marketable securities
c. Conservative matching and recognition procedures under historical costing
d. All of the above
ANSWER: C
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Which of the following best describes the term capital rationing?
A) a method of determining the period within which the cash invested is recouped B) a process of ranking and choosing among alternative capital investments based on the availability of funds C) a method which shows the effect of an investment on a company's accrual-based income D) a process of controlling operating costs when adequate funds are not available
The balanced scorecard can be used to provide information on quality in an organization
Indicate whether the statement is true or false
D'Sean promises to pay his personal assistant Edie $50,000 in consideration of the services she provided over the years. D'Sean never makes the payment. D'Sean's promise is A) enforceable for the entire $50,000
B) enforceable to the extent of what Edie's services were actually worth. C) not enforceable because the consideration is in the past. D) not enforceable because the failure to pay is an unforeseen difficulty.
Subjective sensory attributes of a product such as taste, feel, sound, look, and smell are known as the ________ dimension of quality.
Fill in the blank(s) with the appropriate word(s).