DeYoung Devices Inc., a new high-tech instrumentation firm, is building and equipping a new manufacturing facility. Assume that currently its equipment must be depreciated on a straight-line basis over 10 years, but Congress is considering legislation that would require the firm to depreciate the equipment over 7 years. If the legislation becomes law, which of the following would occur in the year following the change?
A. The firm's reported net income would increase.
B. The firm's operating income (EBIT) would increase.
C. The firm's taxable income would increase.
D. The firm's net cash flow provided (used) by operations would increase.
E. The firm's tax payments would increase.
Answer: D
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Adonis Corporation issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. Adonis received $206,948 in cash proceeds. Which of the following statements is true?
A. Adonis must pay $200,000 at maturity and no interest payments. B. Adonis must pay $200,000 at maturity plus 20 interest payments of $7,500 each. C. Adonis must pay $206,948 at maturity plus 20 interest payments of $8,000 each. D. Adonis must pay $200,000 at maturity plus 20 interest payments of $8,000 each. E. Adonis must pay $206,948 at maturity and no interest payments.
The use of prenumbered sales invoices is the primary control procedure to satisfy the objective of authorization
a. True b. False Indicate whether the statement is true or false
Which message would be most effective when organized indirectly?
A) An e-mail message informing employees about a change in summer work hours B) An announcement about management training seminars being offered to employees C) An e-mail message asking employees to donate to a local charity through payroll deductions D) An e-mail message telling employees that carpools are being organized
Two factors that go into the determination of the appropriate order point are the deliver-time stock
and the safety stock required. Indicate whether the statement is true or false