Theoretically, the more the earnings, the more a firm should use debt for financing purposes

Indicate whether the statement is true or false.


Answer: TRUE

Business

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In an opinion, an auditor can include a general statement disclaiming any liability for false or misleading financial statements

Indicate whether the statement is true or false

Business

Melingo Furniture provides its customers with an option of buying, selling, and servicing of its products online. This helps Melingo Furniture create a customer base by providing convenience to them. In this scenario, Melingo Furniture is involved in _____.

A. e-commerce B. cloud computing C. data mining D. object hyperlinking

Business

Simpson, Inc. is considering a five-year project that has an initial outlay or cost of $80,000

The respective future cash inflows from its project for years 1, 2, 3, 4 and 5 are: $15,000, $25,000, $35,000, $45,000, and $55,000. Simpson uses the internal rate of return method to evaluate projects. What is the project's IRR? A) The IRR is less than 22.50%. B) The IRR is about 24.16%. C) The IRR is about 26.16%. D) The IRR is over 26.50%.

Business

Douglas and Julie are a married couple who live in Louisiana, a community property state. They jointly own property with an adjusted basis of $140,000. On December 2 of this year, Julie died when the property had a fair market value of $160,000. Douglas's basis in the property after Julie's death is

A. $140,000. B. $150,000. C. $160,000. D. $0.

Business