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

Business

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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?

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Transfer pricing is a strategy that may be used by MNEs to:

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Business