The direct write-off method is
a. acceptable for financial reporting purposes.
b. required for income tax purposes.
c. acceptable for auditing purposes.
d. required by generally accepted accounting principles.
b
You might also like to view...
An injunction is:
A. A court-ordered restraint on action to prevent harm or damage to someone else. B. A charge of conspiracy against the government. C. The right of an employer to fire any employee, at any time. D. A rule that prohibits union organizing.
Mark lived in Kingston Ontario and purchased a Kleen Kar franchise for $80,000
A month after he bought the franchise he realized that the franchisor had failed to disclose most of the key information required under the Ontario law regulating franchises and had lied about key facts. Mark soon discovered Kleen Kar was almost bankrupt and the owners had been jailed previously for fraud. As a result Mark A) could sue the franchisor's officers and directors personally B) can have the contract rescinded C) can get back his $50,000 and related costs D) all of the above E) can do nothing as he should have investigated more carefully before he bought the franchise
Which of the following statements is true of buying an established business?
A. There is more creative freedom than when starting a business from scratch. B. Relationships with customers have to be established. C. Getting financing and credit is less challengingthan when starting a business from scratch. D. The chance of first-year failure is zero.
Which of the following capital budgeting techniques ignores the time value of money?
A) payback period approach B) net present value C) internal rate of return D) profitability index