A tax free investment will always have a higher after-tax return than a taxable investment

Indicate whether this statement is true or false.


Answer: FALSE

Business

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Under the direct write-off method, the write-off of an account affects the balance sheet and the income statement

Indicate whether the statement is true or false

Business

Which of the following describes a standard test market?

A) It is one in which the firm tests the product or marketing-mix variables through the company's normal distribution channels. B) It is conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors. C) It includes a panel of consumers that has agreed to carry identification cards that each consumer presents when buying goods and services. D) A limited amount of data on consumer response to a new product is fed into a model containing certain assumptions regarding planned marketing programs, which generates likely product sales volume. E) none of the above

Business

When calculating the standard deviation, we divide by n-1 because the sample is drawn from a population and we are trying to determine how much the responses vary from the mean of the entire population

Indicate whether the statement is true or false

Business

In Year 1, Hinkle Corporation Co. acquired a patent from a competitor for $275,000. At the time of purchase, it had 12 years of its legal life remaining; however, due to competition, Hinkle believes that the patent will only be useful for 8 years. Required:Prepare the general journal entry to recognize amortization expense for Year 1.

What will be an ideal response?

Business