Recently the corporate tax law in the U.S. changed so that firms that previously faced a marginal tax rate of close to 40% now pay tax at a flat rate of 21%. Holding everything else constant, this reduction in the tax rate faced by corporations ________.
A) increased the after-tax cost of debt
B) decreased the after-tax cost of debt
C) did not change the after-tax cost of debt
D) increased the value of the deduction for interest expense
A) increased the after-tax cost of debt
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If you are not an authority in a particular subject, how can you add credibility to your message?
A) Use phrases such as "In my experience" or "I believe" B) Add numbers and statistics to the communication C) Discuss areas where you are an authority D) Cite authorities and experts E) Use industry jargon and slang to ensure the tone of the message is correct.
On January 31, a company needed to estimate its ending inventory to prepare its monthly financial statements. The following information is currently available:Inventory as of January 1: $120,500Net sales for January: $400,000Net purchases for January: $270,500This company typically achieves a gross profit ratio of 15%. Ending Inventory under the gross profit method would be:
A. $10,425. B. $9,000. C. $102,425. D. $51,425. E. $51,000.
Answer the following statements true (T) or false (F)
It is no less true under SFAS No. 13 than it was under ARB 38 that more leases are being capitalized than should be.
The selling and administrative expense budgets are part of the financial budgets
Indicate whether the statement is true or false