Which of the following best describes the Net Present Value rule?
A) Take any investment opportunity where the net present value (NPV) is not negative; turn down any opportunity when it is negative.
B) Take any investment opportunity where the net present value (NPV) exceeds the opportunity cost of capital; turn down any opportunity where the cost of capital exceeds the net present value (NPV)
C) When choosing among any list of investment opportunities where resources are limited, always choose those projects with the highest net present value (NPV).
D) If the difference between the present cost of an investment and the present value (PV) of its benefits after a fixed number of years is positive the investment should be taken, otherwise it should be rejected.
Answer: A
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The Allowance for Bad Debts has a credit balance of $8000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of- receivables method, the company's management estimates that uncollectible accounts will be $15,000. What will be the amount of Bad Debts Expense reported on the income statement?
A) $23,000 B) $7000 C) $15,000 D) $8000
Which of the following is a false statement as it relates to analysis?
a. Profitability may not be a major consideration as long as the resources for repayment can be projected. b. Equity capital provides creditors with a cushion against loss. c. There is a difference between the objectives that are sought by short-term grantors of credit and those sought by long-term grantors of credit. d. If merchandise with a 20% markup is sold on credit, it would take ten successful sales of the same amount to make up for one sale not collected. e. The financial structure of the entity is of interest to creditors.
The three major elements of the product decision are:
A) selection, definition, and design. B) goods, services, and hybrids. C) strategy, tactics, and operations. D) cost, differentiation, and speed of response. E) legislative, judicial, and executive.
Microsoft created a $50 million, five-year initiative in which the corporation donated money and products as well as employee time, in an effort to ______.
a. train a workforce to teach future IT workers. b. train a workforce in a skill set that was both scarce and critical to the corporation’s future. c. use scarce resources in communities otherwise not accessed to help repair community colleges. d. provide ethics training in the education community to address IT corruption in the workforce.