Which requirements must be satisfied for an exempt organization to be classified as an unrelated trade or business? Is being classified as an unrelated trade or business good or bad?
What will be an ideal response?
If the following requirements are satisfied, an exempt organization is classified as an unrelated trade or business.???
| ? | The organization conducts a trade or business. |
| ? | The trade or business is not substantially related to the exempt purpose of the organization. |
| ? | The trade or business is regularly carried on by the organization. |
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An advantage of basing bad debt expense on the historical relationship between bad debts and net credit sales is that
A) it provides the best estimate of the net realizable value of accounts receivable. B) it provides the best information to the credit department to use in its collection activities. C) it best adheres to principle of cause and effect recognition. D) it considers the balance in the allowance account when making the bad debt expense estimate.
Which of the following statements is true regarding the rugby approach to new product development?
A) The team handling new product development is closely controlled by the top management. B) The new product development process is a linear process where different stages take place sequentially. C) Different teams of experts handle the product development during different stages of the process. D) Members of the development team stay in close touch with external market conditions and continually learn from each other.
The Privileges and Immunities Clause of the U.S. Constitution prohibits states from ________.
A. enacting laws that unduly discriminate in favor of their residents B. giving free vaccines to their citizens C. granting immunities from prosecution to foreign criminals D. operating a private club
A company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $150,000. The present value of the future cash flows generated by the project is $145,000. Should they invest in this project?
A) yes, because the rate of return on the project exceeds the desired rate of return used to calculate the present value of the future cash flows. B) no, because the rate of return on the project is less than the desired rate of return used to calculate the present value of the future cash flows. C) no, because net present value is +$5,000 D) yes, because the rate of return on the project is equal to the desired rate of return used to calculate the present value of the future cash flows.