What is the ratio of sales to total assets for Diane Company?
a. 1.00
b. 2.94
c. 0.18
d. 0.34
d
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Which of the following is a technique for ranking items in a group based on the value, activity, sales, or other relevant metric for the items?
a. cyclical reordering b. reorder point analysis c. EOQ models d. ABC analysis
Harkin Company purchased a building on a tract of land and allocated the entire cost of the purchase to building. Normally it depreciates buildings over 20 years using the straight-line method with zero residual value and does not depreciate land. Because of its accounting treatment of the purchase, Harkin's income before taxes for the next 20 years will be
a. overstated. b. understated. c. unaffected. d. in conformance with GAAP.
If a vessel is sold, the lien goes with the ship, even if the new owner is unaware of its existence
Indicate whether the statement is true or false
A firm is evaluating a new machine to replace an existing, older machine. The change in depreciation is $3,000. The firm's marginal tax rate is 30 percent. Which of the following statements is true?
A. Depreciation does not affect the calculation of the supplemental operating cash flow. B. Depreciation is added to the after-tax net operating income to calculate the supplemental operating cash flow. C. Depreciation expense is added to the initial outlay incurred to purchase an asset. D. Depreciation is deducted from the terminal cash flows from an asset. E. Depreciation is included in capital budgeting only if it exceeds the tax expense of an asset.