Financial Accounting

Which of the following statements is false? A. Gains and losses on nontaxable ex

Which of the following statements is false? A. Gains and losses on nontaxable exchanges under IRC§1031 are deferred because the tax law recognizes that the exchange results in a m…

Which of the following statements is false? A. IRC§1231 gives taxpayers the best

Which of the following statements is false? A. IRC§1231 gives taxpayers the best of both worlds because it requires all sales of §1231 assets to be "netted." If the result is a ne…

Which of the following statements is false? A. In job-order costing, costs are a

Which of the following statements is false? A. In job-order costing, costs are accumulated by job order. B. In process costing, costs are accumulated by department. C. In process …

Which of the following statements is false? A. Rents may be set as a percentage

Which of the following statements is false? A. Rents may be set as a percentage of sales or profits rather than a fixed monthly amount and still be deductible as rent expense by t…

Which of the following statements is false? A. The IRS has ruled that a develope

Which of the following statements is false? A. The IRS has ruled that a developer is permitted to include in the basis of parcels sold the allocable share of ESTIMATED costs of co…

Which of the following statements is false? A. The IRS has ruled that a develope

Which of the following statements is false? A. The IRS has ruled that a developer is permitted to include in the basis of parcels sold the allocable share of ESTIMATED costs of co…

Which of the following statements is false? A. The certainty equivalent method r

Which of the following statements is false? A. The certainty equivalent method results in a lower net present value for a risky project. B. The risk-adjusted discount rate leaves …

Which of the following statements is false? A. The method of preparing the opera

Which of the following statements is false? A. The method of preparing the operating activities section of a statement of cash flows which adjusts net income to remove the effects…

Which of the following statements is false? A. When property is sold between tax

Which of the following statements is false? A. When property is sold between taxpayers that fit the Internal Revenue Code's definition of "related parties," gain or loss is not re…

Which of the following statements is false? For two mutually exclusive projects,

Which of the following statements is false? For two mutually exclusive projects, the net present value method requires that both projects be combined. the internal rate of return …

Which of the following statements is false? If every transaction is recorded wit

Which of the following statements is false? If every transaction is recorded with equal debits and credits, then the sum of all the debits to the accounts must equal the sum of al…

Which of the following statements is false? In job-order costing, costs are accu

Which of the following statements is false? In job-order costing, costs are accumulated by job order. In process costing, costs are accumulated by department. In process costing, …

Which of the following statements is false? Permanent tax differences only affec

Which of the following statements is false? Permanent tax differences only affect the period in which they occur. Permanent tax differences enter into taxable income but never int…

Which of the following statements is false? Select one: a. cost-effectiveness is

Which of the following statements is false? Select one: a. cost-effectiveness is a basic principle underpinning efficient and effective accounting information systems. b. cost-eff…

Which of the following statements is false? a A company may exclude a short-term

Which of the following statements is false? a A company may exclude a short-term obligation from current liabilities if the firm intent to refinance the obligation on a long-term …

Which of the following statements is false? a)Stockholders have a residual claim

Which of the following statements is false? a)Stockholders have a residual claim on assets in the event of liquidation. b)Shares of stock held in the treasury are deducted from th…

Which of the following statements is false? a. Any existing balance in the Allow

Which of the following statements is false? a. Any existing balance in the Allowance for Uncollectible Accounts is ignored in calculating the uncollectible accounts expense under …

Which of the following statements is false? a. Any existing balance in the Allow

Which of the following statements is false? a. Any existing balance in the Allowance for Uncollectible Accounts is ignored in calculating the uncollectible accounts expense under …

Which of the following statements is incorrect about fundamental business strate

Which of the following statements is incorrect about fundamental business strategies? A company will be more profitable because it will attract a higher volume of customers and sa…

Which of the following statements is incorrect regarding the production costing

Which of the following statements is incorrect regarding the production costing report? a. A separate production report is prepared for each major production process on an annual …

Which of the following statements is incorrect? Job relevant talent h not restri

Which of the following statements is incorrect? Job relevant talent h not restricted because of anyone's race, gender, or religion. Anyone who for you should have knowledge creati…

Which of the following statements is incorrect? Select one: a. A firm\'s total e

Which of the following statements is incorrect? Select one: a. A firm's total economic cost is at least as large as the firm's total accounting cost. b. A firm's total economic co…

Which of the following statements is incorrect? The further into the future a ca

Which of the following statements is incorrect? The further into the future a cash receipt is expected to occur, the lower is its present value. The return on investment measures …

Which of the following statements is incorrect? a. The purchase of a corporation

Which of the following statements is incorrect? a. The purchase of a corporation is always treated as the purchase of the corporate stock. b. The purchase of an unincorporated sol…

Which of the following statements is most CORRECT? Answer A. The typical actual

Which of the following statements is most CORRECT? Answer A. The typical actual cash budget will reflect interest on loans and income from investment of surplus cash.These numbers…

Which of the following statements is most CORRECT? a)One advantage of forward co

Which of the following statements is most CORRECT? a)One advantage of forward contracts is that they are default free. b)Futures contracts generally trade on an organized exchange…

Which of the following statements is most correct regarding the independent audi

Which of the following statements is most correct regarding the independent auditor's reliance on the tests of controls performed by the internal auditors to reduce their substant…

Which of the following statements is most correct? (Points : 6) A. If a stock\'s

Which of the following statements is most correct? (Points : 6) A. If a stock's beta increased but its growth rate remained the same, then the new equilibrium price of the stock w…

Which of the following statements is most correct? (Points : 6) The CAPM approac

Which of the following statements is most correct? (Points : 6) The CAPM approach to estimating a firm's cost of common stock never gives a better estimate than the DCF applicatio…

Which of the following statements is most correct? 1 - If two companies have the

Which of the following statements is most correct? 1 - If two companies have the same ROE and the same risk they must have the same residual income (abnormal earnings) for the yea…

Which of the following statements is most correct? 1 - If two companies have the

Which of the following statements is most correct? 1 - If two companies have the same ROE and the same risk they must have the same residual income (abnormal earnings) for the yea…

Which of the following statements is most correct? Fundamental analysis attempts

Which of the following statements is most correct? Fundamental analysis attempts to value a company by examining the past prices patterns of a company's stock. Individuals who app…

Which of the following statements is most correct? a. Permanent current assets a

Which of the following statements is most correct? a. Permanent current assets are those current assets that must be increased when sales increase during an upswing. b. Temporary …

Which of the following statements is not correct when describing the Two Dimensi

Which of the following statements is not correct when describing the Two Dimensional ABC  Model? This is the model that pictures the relationship between Activity Based Costing an…

Which of the following statements is not correct when describing the Two Dimensi

Which of the following statements is not correct when describing the Two Dimensional ABC Model? This is the model that pictures the relationship between Activity Based Costing and…

Which of the following statements is not correct? (Points : 5) The allowance met

Which of the following statements is not correct? (Points : 5) The allowance method involves anticipating losses from uncollectible accounts by recognizing an expense for these lo…

Which of the following statements is not correct? (Points : 5) The use of the di

Which of the following statements is not correct? (Points : 5) The use of the direct charge-off method of recording losses from uncollectible accounts usually results in the balan…

Which of the following statements is not correct? ? Postings to the accounts rec

Which of the following statements is not correct? ? Postings to the accounts receivable subsidiary ledger are usually made once a month on the last day of the month. ? Before any …

Which of the following statements is not correct? A) The gross profit percentage

Which of the following statements is not correct? A) The gross profit percentage is calculated by dividing the gross profit for the year by the net sales for the year. B) A curren…

Which of the following statements is not correct? Question 1 options: The govern

Which of the following statements is not correct? Question 1 options: The government-wide statements are separated into governmental activities and business-type activities. Discr…

Which of the following statements is not correct? The sales budget is the starti

Which of the following statements is not correct? The sales budget is the starting point in preparing the master budget. The sales budget is constructed by multiplying the expecte…

Which of the following statements is not correct? a.Corporations must estimate a

Which of the following statements is not correct? a.Corporations must estimate and prepay their income taxes through quarterly tax deposits. b.At the end of the year, when the wor…

Which of the following statements is not true concerning the analysis of operati

Which of the following statements is not true concerning the analysis of operating activities? Select one: a. extraordinary items include an event or transaction that has a high d…

Which of the following statements is not true in measuring earnings? Capital mai

Which of the following statements is not true in measuring earnings? Capital maintenance approach is more related to measurement problem, while transaction approach is more relate…

Which of the following statements is not true regarding the $500 credit for depe

Which of the following statements is not true regarding the $500 credit for dependent other than a qualifying child credit. Cannot be claimed on the same tax return if the child t…

Which of the following statements is not true regarding the education credits? A

Which of the following statements is not true regarding the education credits? A) If a dependent pays for qualified expenses, the expenses are deemed paid by the taxpayer. B) Paym…

Which of the following statements is not true relating to cash flow analysis A C

Which of the following statements is not true relating to cash flow analysis A Cash return on assets indicates the amount of operating cash flow generated for each dollar invested…

Which of the following statements is not true? Sales budgets are prepared before

Which of the following statements is not true? Sales budgets are prepared before the cash budgets. Budgeted balance sheets are dependent upon budgeted income statements. Budgeted …

Which of the following statements is not true? Select one: a. Operating leverage

Which of the following statements is not true? Select one: a. Operating leverage refers to the extent to which a company's net income reacts to a given change in sales. b. Compani…

Which of the following statements is not true? a. Sometimes managers release a f

Which of the following statements is not true? a. Sometimes managers release a forecast of EPS and it may cause managerial short-termism. b. If managers cannot meet a forecasted E…