Which of the following statements is CORRECT?
A. The shorter a project's payback period, the less desirable the project is normally considered to be by this criterion.
B. One drawback of the payback criterion is that this method does not take account of cash flows beyond the payback period.
C. If a project's payback is positive, then the project should be accepted because it must have a positive NPV.
D. The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.
E. One drawback of the discounted payback is that this method does not consider the time value of money, while the regular payback overcomes this drawback.
Answer: B
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Which of the following statements regarding FIFO is incorrect?
A) Ending inventory is based on the costs of the most recent purchases. B) FIFO is consistent with the physical movement of inventory for most companies. C) The first units to come in are assumed to be the first units sold. D) FIFO is a specific identification costing method because companies sell their oldest inventory first.
Sharon, an employee at Coral Triangle Inc, wants to inform the company's senior management that her high revenue-generating project is progressing well and may be completed before the scheduled date. Which of the following practices should she avoid when addressing the senior management through e-mail? A. She should avoid using a more formal tone. B. She should avoid using contractions like
"you'll" and "here's." C. She should avoid using the direct approach to inform senior management about the goodnews. D. She should avoid using words like "efficient," "progress," and "guarantee" in the e-mail.
Which of the following respecting trade marks in Canada is true?
A) A trade mark will not be registered unless it has actually been in use in Canada. B) Registration of a trade mark cannot be based on registration in a foreign country. C) If the DUCT Corp. attempts to register "DUCT tape" as a trade mark, it would be refused. D) Use of another person's trade mark is not infringement if it is not done for profit. E) Both C and D
The fundamental purpose of a variable annuity is to
A) provide funding flexibility to the purchaser. B) provide a hedge against inflation. C) fund the purchase of cash value life insurance. D) guarantee a fixed-dollar benefit throughout retirement.