The accounting rate of return (ARR) is computed by dividing a project's after-tax net income by the average annual investment.
Answer the following statement true (T) or false (F)
True
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Disadvantages of using the retrospective application method do not include which of the following?
A) Numbers must be changed on previously released financial statements. B) The cost of determining the effect of the change may be greater than the benefits obtained from the increase in comparability. C) It has possible impacts on contractual arrangements. D) All financial statements consistently apply the same revenue recognition principles.
A group couponing site such as Groupon rewards customers who invite their friends to purchase coupons. This is an example of ______.
a. Guests as part of each other’s experience b. Guests as marketers c. Guests as unpaid consultants d. Guests as supervisors
On February 12, Oceans Company purchased a tract of land as a factory site for $190,000 . An existing building on the property was razed and construction was begun on a new factory building in March of the same year. Additional data are available as follows: Cost of razing old building .......................... $ 55,000 Title insurance and legal fees to purchase land ...... 7,500 Architect's
fees ..................................... 52,500 New building construction cost ....................... 975,000 The recorded cost of the completed factory building should be a. $1,165,000 b. $1,220,000 c. $1,027,500 d. $1,082,500
Sanctions by the West on Russia may
A. lead to collaborations between EU and Russian businesses, especially in the energy sector. B. isolate Russian businesses and limit their access to international capital. C. create positive PR about the safety of Russia for foreign operations. D. support the international growth of Russian business.