Which of the following possible measurement bases listed by the IASB in the most prevalent?
a. Present value
b. Exit value
c. Replacement cost
d. Historical cost
ANSWER: D
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Sybil and Mary are required to complete a ropes course for their team retreat. Sybil is petrified and does not feel confident in her ability to finish the course. Mary, on the other hand, feels very confident doing physical activities and is looking forward to it. Sybil and Mary have ______.
A. low self-efficacy and high self-efficacy, respectively B. low reciprocal behavior and high reciprocal behavior, respectively C. high reciprocal behavior and low reciprocal behavior, respectively D. low self-regulation and high self-regulation, respectively
Assuming a bottom-up process of budget development, which of the following should be initially responsible for developing sales estimates?
A. The marketing department. B. The sales department. C. The accounting department. D. Top management. E. The budget committee.
A firm has a projected EBIT of $20,000 for a new project. The funds needed for the project are $40,000. The firm can finance the project completely with debt at a pre-tax interest cost of 10%
Alternatively, the firm could finance the project with equity by selling stock at $5 per share. If there are 500,000 shares outstanding and the firm's tax rate is 40%, what is the EBIT-EPS indifference point? A) $254,000 B) $504,000 C) $40,000 D) $20,000 E) $500,000
The management of Winstead Corporation is considering the following three investment projects (Ignore income taxes.): Project QProject RProject SInvestment required$82,400? $125,900? $235,500? Present value of cash inflows$90,064? $145,084? $258,175? The only cash outflows are the initial investments in the projects.Required:Rank the investment projects using the project profitability index.Rank 1?Rank 2?Rank 3?
What will be an ideal response?