[APPENDIX] Temporary differences occur when an item affects both book and tax calculations but not in the same time period

a. True
b. False
Indicate whether the statement is true or false


True

Business

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The effective interest rate on bonds is lower than the stated rate when bonds sell

a. above face value. b. at maturity value. c. below face value. d. at face value.

Business

Well-established skills and competencies that are so entrenched, they prevent a firm from seeing new ways of doing things are known as

a. marketing myopia. b. competence lock-in. c. innovation killers. d. core rigidities. e. knowledge obsolescence.

Business

When a job costing $5,000 is completed, the following journal entry is made:

A) Finished Goods 5,000Cost of Goods Sold 5,000 B) Cost of Goods Sold 5,000Finished Goods 5,000 C) Work-in-Process 5,000Finished Goods 5,000 D) Finished Goods 5,000Work-in-Process 5,000 E) Cost of Goods Sold 5,000Sales 5,000

Business

During the sales decline stage of the product life cycle, 

A. price competition usually declines. B. brand loyalty declines rapidly. C. monopoly is a typical end result. D. across the board, no profits are earned. E. good product differentiation is profitable.

Business