James works for the county fire department and has not had a raise in three years. When he shows up at the mayor's house to put out a fire, he sees the mayor standing outside
James tells the mayor that he will put out the fire only if the mayor agrees to give him a raise. The mayor agrees. In this scenario, which of the following statements is true?
A) A valid contract exists because all the elements of a valid contract are present.
B) A valid contract does not exist because the value of the consideration for the mayor's promise is inadequate.
C) A valid contract exists because of the past consideration rule.
D) A valid contract does not exist because of the preexisting duty rule.
D
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A company's income statement showed the following: net income, $125,000 and depreciation expense, $30,300. An examination of the company's current assets and current liabilities showed the following changes: accounts receivable decreased $9500; merchandise inventory increased $18,200; and accounts payable increased $3500. Calculate the net cash provided or used by operating activities.
A. $160,500. B. $179,500. C. $124,100. D. $119,000. E. $150,100.
The purchase of equity securities is classified as an investing activity.
Answer the following statement true (T) or false (F)
Under a flat tax structure, where the same tax rate applies to all income levels ________.
A) the marginal tax rate is greater than the average tax rate B) the marginal tax rate is less than the average tax rate C) the marginal tax rate is equal to the average tax rate D) the marginal tax rate is irrelevant
Which of the following is considered to be a deficiency of the IRR?
A) It fails to properly rank capital projects. B) It could produce more than one rate of return. C) It fails to utilize the time value of money. D) It is not useful in accounting for risk in capital budgeting.