The temporary difference associated with accelerated depreciation for tax purposes and straight-line depreciation for financial reporting purposes means that a firm will pay _____ income taxes in the early years of the asset's life, but this temporary difference will reverse over the entire asset life, resulting in _____ taxes in later years
a. higher; higher
b. lower; higher
c. higher; lower
d. lower; lower
e. average; average
B
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Which of the following statements is correct?
A. An open-market dividend reinvestment plan will be most attractive to companies that need new equity and would otherwise have to issue additional shares of common stock through investment bankers. B. Stock repurchases tend to reduce financial leverage. C. If a company declares a 2-for-1 stock split, its stock price should roughly double. D. One advantage of adopting the residual dividend policy is that this makes it easier for corporations to meet the requirements of Modigliani and Miller's dividend clientele theory. E. If a firm repurchases some of its stock in the open market, then shareholders who sell their stock for more than they paid for it will be subject to capital gains taxes.
________ marketing is about making sure the brand and its marketing are as personally relevant as possible to as many customers as possible–a challenge, given that no two customers are identical
A) Personalizing B) Permission C) Identification D) Database E) Integrated
Financial budgets include
a. pro forma statements, a sales budget, and a cost of goods manufactured budget. b. a budgeted income statement and budgeted balance sheet only. c. a budgeted income statement, budgeted balance sheet, and cash budget. d. pro forma statements, a capital expenditures budget, and a cash budget.
Latone Company began operations in 2014 . During the first two years of operations, Latone made undiscovered errors in taking its year-end inventories that understated 2014 ending inventory by $40,000 and overstated 2015 ending inventory by $50,000 . The combined effect of these errors on reported income is 2014 2015 2016
a. understated $40,000 overstated $50,000 not affected b. understated $40,000 overstated $10,000 not affected c. understated $40,000 overstated $90,000 understated $50,000 d. overstated $40,000 understated $50,000 overstated $10,000