During a period of declining prices, a company using the LIFO inventory method instead of FIFO would most likely report:
A. Higher current assets and lower gross income
B. Higher current assets and higher gross income
C. Lower current assets and lower gross income
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Which of the following will most likely have the least impact on a corporate bond rating?
A. The companys liquidity provision.
B. The companys debt burden provision.
C. The companys volume of gross revenue.
The short-run effects of unanticipated expansionary monetary policy are most likely to include:
A decrease in the real interest rate
B. A decrease in the inflation rate
C. A decrease in real output and employment
General International manufacture Inc. sold a piece of equipment for $50,000 cash. The company paid $150,000 for the equipment several years ago and had a accumulated depreciation of $120,000 at the d
A. $20,000 more than net income.
B. $20,000 less than net income.
C. $30,000 less than net income.
Fiona Acquisition, Inc., is considering the purchase of Kingbet Company. The acquisition would require an initial investment of $190,000, but Fionas after-tax net cash flows would increase by $30,000
A. Yes,because the NPV = $10,000.
B. No,because k > IRR.
C. Yes,because the IRR > the cost of capital.