What is often referred to as "abusing the cutoff?"
a. Inflating revenues by using implied side agreements.
b. Inflating revenues by selling unused assets for a promise to buy them or similar assets back at roughly the same price.
c. Inflating current revenues by allowing customers to return products and cancel sales in future periods.
d. Inflating revenues by including revenues in the current period that should be recognized in the next period.
d
FEEDBACK: a. Incorrect.
b. Incorrect.
c. Incorrect.
d. Correct.
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Normal Projects S and L have the same NPV when the discount rate is zero. However, Project S's cash flows come in faster than those of L. Therefore, we know that at any discount rate greater than zero, L will have the higher NPV.
Answer the following statement true (T) or false (F)
Product and target market characteristics usually determine the type of coverage a product receives. For which of the following products is selective distribution most appropriate?
A. Gasoline B. Jaguar automobiles C. Skippy peanut butter D. Laundry detergent E. Organic foods
Nimble Numbers Accounting Corporation, a private employer, handles bookkeeping for small employers. In most circumstances, with exceptions, federal law clearly prohibits Nimble from subjecting its employees to
a. job-skills tests. b. monitoring of business communications. c. drug tests. d. lie-detector tests.
Kristen attempts to address time pressure by working harder and seeking assistance in devising a strategy for accomplishing the work more efficiently. In the example, Kristen uses
A. problem-focused coping. B. organizational coping mechanisms. C. Type A coping mechanisms. D. cognitive-based coping. E. virtual coping.