Capitalized interest usually results in:
a. interest being added to a fixed asset instead of expense.
b. interest capitalized not being included with the total interest expense in the denominator of times interest earned ratio.
c. interest being added to the expense from construction of large assets.
d. disclosure in notes only if it is all capitalized.
a
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Answer the following statements true (T) or false (F)
1) In a period of rising costs, the last-in, first-out (LIFO) method results in a higher cost of goods sold and a lower net income than the first-in, first-out (FIFO) method. 2) Given the same purchase and sales data, and assuming the cost of inventory is rising, the costing methods for inventory will result in different amounts for cost of goods sold. 3) Given the same purchase and sales data, and assuming the cost of inventory is rising, the costing methods for inventory will result in different amounts for sales revenue. 4) Given the same purchase and sales data, and assuming the cost of inventory is rising, the costing methods for inventory will result in different amounts for net income.
The best definition for reliability is
a. a measure of the degree to which data measures what you intend for it to measure. b. a measure of the accuracy and repeatability of the data. c. a measure of the relationship between two variables. d. none of the above
The Securities Act of 1933 established the Securities and Exchange Commission
a. True b. False Indicate whether the statement is true or false
Which of the following is representative of a firm pursuing a learning-curve strategy?
A) aggressive pricing policy B) focus on productivity improvement C) building on shared experience D) keeping capacity growing ahead of demand E) all of the above