The expensing of a long-lived asset such as a wastebasket is justified by which of the following accounting rules or principles?
A) Matching
B) Materiality
C) Full disclosure
D) Consistency
B
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If you are just graduating from college and have limited professional experience,
A) a traditional chronological résumé is your only option. B) a functional résumé is your only option. C) your chronological résumé should probably list educational qualifications before listing experience. D) your résumé can be written in a casual, informal tone. E) avoid mentioning volunteer work.
What does the Financial Accounting Standards Board now call special purpose entities?
a. variable interest entities b. off-balance-sheet entities c. structured finance entities d. risk mitigation vehicles
Which of the following statements if false?
a. In evaluating possible courses of action, one possible course of action is to "do nothing". b. A sunk cost may be either relevant or irrelevant. c. A cost that has been incurred in the past is called a sunk cost. d. Information is relevant only if it pertains to future decision choices.
You own a gas station and are thinking about raising prices because your cost of the gasoline has increased. You are worried that if you raise the price, the quantity of gasoline purchased by your customers will decrease, thereby lowering your total revenues. Analyze this situation.
What will be an ideal response?