Depreciation is an example of which expense recognition principle?
A) association of cause and effect
B) systematic and rational allocation
C) cost recovery
D) immediate recognition
B
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During a brainstorming session, Gracie asked for clarification of one of George’s solutions to the problems at hand. Gracie was violating which rule of brainstorming?
A. don’t evaluate ideas B. don’t clarify ideas C. encourage zany ideas D. expand on others’ ideas
Under the accrual method, the timing of revenue recognition is influenced by
a. where the purchaser gets funds to pay the seller. b. whether the buyer pays with cash or a promise. c. when the services or product are provided. d. when the seller has received a form of payment in settlement of a purchaser's promise. e. the nature of the services or product provided.
Which of the following is a comma pitfall?
A. Using commas to separate thousands, hundred thousands, millions, and so on, in numberswith more than four digits B. Using commas to set off introductory words, phrases, and clauses C. Using commas to set off parenthetical elements within sentences D. Using commas to separate a subject from its predicate
The market value of Galleon's debt and equity capital totals $180 million, 80% of which is equity related. An analysis conducted by the company's finance department revealed a 7% after-tax cost of debt capital and a 10% cost of equity capital. On the basis of this information, Galleon's weighted-average cost of capital:
A. is 7.6%. B. is 9.4%. C. is 8.5%. D. cannot be determined based on the data presented because the cost of debt capital must be stated on a before-tax basis. E. cannot be determined based on the data presented because the cost of equity capital must be stated on an after-tax basis.