U.S. GAAP requires that firms classify cash payments for interest expense as a(n) _____ activity
a. operating
b. financing
c. investing,
d. operating, investing, or financing
e. None of the above are correct.
A
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All of the following are steps you can take to limit message alteration EXCEPT
a. limit the number of people a message travels through before it gets to you. b. go to the source for clarification. c. shoot the messenger. d. keep communication channels open with subordinates and customers.
Which statement is not true?
A) If a lease is a capital lease because of a bargain purchase option, the leased asset should be depreciated over the life of the asset, not the life of the lease. B) The lessee ignores unguaranteed residual value in the measurement of the lease obligation. C) If there is a bargain purchase option, the lessor does not consider an unguaranteed residual value in measuring the lease receivable at the date of lease signing. D) In direct financing leases, the net investment in the lease should be adjusted each year by material changes (increases or decreases) in estimated unguaranteed residual values.
An advantage of internal development as a means of acquiring new technology is that
A. it does not require firms to maintain a large staff. B. the technology is proprietary and it provides a competitive edge. C. it is simple to implement and cost-effective. D. the costs associated with new technology development can be shared by two or more firms. E. it permits firms to access unique technology for a minimal fee.
In order to avoid double taxation on the income of foreign subsidiary companies, U.S. tax law: A) does not tax income repatriated to the U.S. parent company
B) allows the U.S. parent company to take a 100 percent tax credit for foreign income taxes paid. C) provides a deduction for foreign income taxes paid. D) none of the above. U.S. companies are usually subject to double taxation when they have foreign subsidiaries.