Any capital budgeting decision should depend solely on a project's forecasted cash flows and the firm's opportunity rate of return. Such a decision should not be affected by managers' tastes, the choice of accounting method, or the profitability of other independent projects.
Answer the following statement true (T) or false (F)
True
Any capital budgeting decision should depend solely on a project's forecasted cash flows and the firm's opportunity rate of return. Such a decision should not be affected by managers' tastes, the choice of accounting method, or the profitability of other independent projects. See 9-1: Importance of Capital Budgeting
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Jenning Co adjusts its books each month but closes its books at the end of the year. The trial balance at July 31 before adjustments is as follows: Debit Credit Cash $12,920 Accounts Receivable 9,620 Supplies 1,400 Prepaid Insurance 3,120 Equipment 26,000 Accumulated Depreciation—Equipment $10,400 Unearned Service Revenue 6,500 Capital Stock 7,190 Retained Earnings 23,500 Dividends 1,560
Service Revenue 16,510 Wages and Salaries Expense 7,800 Utilities Expense 380 Rent Expense 1,300 $64,100 $64,100 Refer to the trial balance for Jenning Co On July 31, the amount of supplies on hand is $520 . What amount is reported in the July income statement for supplies expense? a. $520 b. $1,400 c. $1,920 d. $880
The following are the current month's balances for Toys Galore, Inc. before preparing the trial balance
Accounts Payable $7,000 Revenue 6,000 Cash 2,000 Expenses 14,500 Furniture 11,000 Accounts Receivable 10,000 Common Stock ? Notes Payable 6,500 What amount should be shown for Common Stock on the trial balance? A) $39,000 B) $18,000 C) $13,500 D) $23,000
Given the following opportunity loss function, determine the loss when 400 units are sold
Opportunity loss = 3 (1,000 - X) for X ? 1,000, otherwise 0. A) 1,200 B) 0 C) 600 D) 3 E) 1,800
Fact Pattern 12-2ACut-Rate Construction Company (CCC) begins building a restaurant for Diners Restaurants, Inc., but after two months demands an extra $100,000. Diners agrees to pay.Refer to Fact Pattern 12-2A. If CCC offers no reason for the extra $100,000, but says only that it will otherwise stop construction, the agreement is
A. enforceable as an accord and satisfaction. B. enforceable because of unforeseen difficulties. C. unenforceable as an illusory promise. D. unenforceable due to the preexisting duty rule.