Stockholder investments always decrease equity.
Answer the following statement true (T) or false (F)
False
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The FASB addressed simultaneous financing and investing activities by requiring they be ignored.
Answer the following statement true (T) or false (F)
Book value per share may not approximate market value per share because:
a. Land may have substantially increased in value. b. Market value reflects future potential earning power. c. Investments may have a market value substantially above the original cost. d. All of these are reasons why book value per share may not approximate market value per share.
Which of the following statements is not true about depreciation for tax purposes?
a. The straight-line method is used for most assets. b. Estimated useful life is ignored. c. Depreciable assets are written off rapidly. d. Estimated residual value is ignored.
Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal?
A) market-skimming pricing B) market-penetration pricing C) market-segmentation pricing D) cost-plus pricing E) captive-product pricing