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NEW QUESTION: 1
Firms A and B are identical. In one year, Firm A's statements have the beginning inventory understated and the ending inventory overstated. Then,
I. A's tax payment is higher.
II. B's tax payment is higher.
III. B shows a higher income.
IV. A shows a higher income.
A. I & III
B. II & III
C. II & IV
D. I & IV
Answer: D
Explanation:
Explanation/Reference:
Explanation:
COGS = Beginning inventory - Ending inventory + Purchases. Hence, if BI is understated and EI overstated, COGS is understated, implying income is overstated. Hence, Firm A will show higher income and pay higher taxes. It should be remembered that implicit in the use of the above inventory equation is the assumption that there have been no write-downs or write-ups in the inventory.
NEW QUESTION: 2
What is the maximum number of FlexNICs that can be implemented on a dual port Flex-10 adapter?
A. 0
B. 1
C. 2
D. 3
Answer: D
NEW QUESTION: 3
As part of the business case, which of the following criteria will drive a feasibility study to be performed?
A. Aligns with the provided RFP
B. Low complexity project
C. There is a legal/regulatory requirement
D. Project has never been done before
Answer: D
