Answer the following statements true (T) or false (F)
1. Replacing an engine on a delivery truck would be considered a betterment.
2. Adding on 30 rooms to an existing hotel would be considered a betterment because the addition added to the hotel's capacity.
3. The matching principle dictates whether the cost of a repair should be expensed or depreciated
4. Incorrectly capitalizing an expense results in net income being overstated.
5. Disposal of a plant asset always occurs after the asset has been fully depreciated.
1. FALSE
2. TRUE
3. TRUE
4. TRUE
5. FALSE
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Which element below is defined as the motivation we derive from stretching and exercising our capabilities?
A. need for capability B. need for self-determination C. need for competence D. need for adequacy
You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would lower the calculated value of the investment?
A. The discount rate decreases. B. The cash flows are in the form of a deferred annuity, and they total to $100,000. You learn that the annuity lasts for only 5 rather than 10 years, hence that each payment is for $20,000 rather than for $10,000. C. The discount rate increases. D. The riskiness of the investment's cash flows decreases. E. The total amount of cash flows remains the same, but more of the cash flows are received in the earlier years and less are received in the later years.
Transfer pricing is a strategy that may be used by MNEs to:
A) reduce consolidated corporate income taxes. B) partially finance a subsidiary in another country. C) transfer funds from a subsidiary to the parent corporation. D) all of the above
A restaurant administered a survey to its customers asking them a single question: "How likely is it that you would recommend our restaurant to a friend or colleague?" It received the following scores: 8, 3, 6, 10, 8, 4, 9, 10, 7, 9, 5, 9. What is the net promoter score (NPS) for the restaurant?
A) 1 B) 2 C) 3 D) 5