Some investment projects require that a company increase its working capital. Under the net present value method, the investment and eventual recovery of working capital should be treated as:
A. irrelevant to the net present value analysis.
B. both an initial cash outflow and a future cash inflow.
C. a future cash inflow.
D. an initial cash outflow.
Answer: B
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The subject matter of a non-audit attestation engagement can be quite varied
a. True b. False Indicate whether the statement is true or false
Few international companies are organized by function at the top level.
Answer the following statement true (T) or false (F)
You are interested in purchasing a speedboat on sale for $35,000. You make an offer of $29,500, thereby using the negotiating tactic,
A) begin with a plausible demand or offer, yet allow room for negotiation. B) compromise. C) make small concessions gradually. D) know your best alternative to a negotiated agreement.
On May 1, Sellers Marketing Company received $1,500 from Franco Marcelli for a marketing campaign effective from May 1 this year to April 30 of the following year. The Cash receipt was recorded as unearned fees and at year-end on December 31, $1,000 of the fees had been earned. Assuming adjustments are only made at year-end, the adjusting entry on December 31 would be:
A. A debit to Fees Earned and a credit to Unearned Fees for $500. B. A debit to Fees Earned and a credit to Cash for $1,000. C. A debit to Unearned Fees and a credit to Cash for $500. D. A debit to Unearned Fees and a credit to Fees Earned for $1,000. E. A debit to Fees Earned and a credit to Cash for $500.