Which of the following is true regarding asset abandonment?
a. Firms will sometimes abandon assets if there is no market for the asset.
b. The firm eliminates the carrying value of the asset and recognizes a loss in an amount equal to the carrying value.
c. Firms will sometimes abandon assets if an automobile is severely damaged in an accident.
d. Firms will sometimes abandon assets if a machine requires an overhaul that is not cost effective.
e. all of the above
E
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Which of the following fraud symptoms is often the easiest to detect?
a. Analytical anomalies b. Internal control weaknesses c. Accounting anomalies d. Lifestyle changes
The market will not be efficient if it does not have access to relevant information or if fraudulent information is provided
Indicate whether the statement is true or false
Which of the following statements is most likely true of market follower strategies?
A) Market followers have the resources to expand the market by developing new users, new uses, and more usage of its products. B) Market followers must expand internationally first to ensure distribution effectiveness, cost savings, and quality control. C) Market followers should conduct indirect attacks on competitor's weaknesses to gain market share quickly and inexpensively. D) Market followers benefit from pursuing subsegments of target markets due to their limited resources. E) Market followers must keep manufacturing costs and prices low or product quality and services high.
Answer the following statements true (T) or false (F)
1. With the trend of participative management, managers are using less self-leadership. 2. Peer pressure is associated with clan control. 3. The difference between pro forma statements and financial statements is that pro forma statements report past results while the financial statements project future results. 4. If a company desires to raise capital without selling any ownership in the company, then they should sell stocks rather than bonds.