Which of the following would be most likely to occur in the year after Congress, in an effort to increase tax revenue, passed legislation that forced companies to depreciate equipment over longer lives? Assume that sales, other operating costs, and tax rates were not affected, and assume that the same depreciation method was used for tax and stockholder reporting purposes.
A. Companies' after-tax operating profits would decline.
B. Companies' physical stocks of fixed assets would increase.
C. Companies' cash flows would increase.
D. Companies' cash positions would decline.
E. Companies' reported net incomes would decline.
Answer: D
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___________________ is the accomplishment of role-related expectations that are negotiated and shared between an individual and his or her role-related partners in the work and family [life] domains.
a. Success b. Promotion c. Work-life balance d. Lateral move
Which of the following would not be reported on the income statement?
A. Cost of land purchased with cash for future use. B. Revenue for services provided to customers who promise to pay in the next period. C. Rent expense in the amount of rent paid during the period for use of a storage facility in the current period. D. Utilities expense in the amount of a bill received for utilities used during the current period but unpaid as of the end of the period.
Which of the following is an element of inventory holding costs?
A) housing costs B) material handling costs C) investment costs D) pilferage, scrap, and obsolescence E) All of the above are elements of inventory holding costs.
Banana Computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. How will this decision affect the firm?
A. The firm will have more flexibility in purchasing and comparing prices of goods and services. B. The firm will have high-powered incentives, such as hourly wages and salaries. C. The firm will be protected against the principal-agent problem. D. The firm's administrative costs will be low because of necessary bureaucracy.