When comparing the rule under any of the methods the process is consistent with the principle of conservatism because the goal is to limit excessive wings in pro margin the appropriate market value is determined before comparing it to the cost the purpose of the floor is to prevent an excessive gain from being recognized in the future the purpose of the ceiling is to ensure that the write-drwn is sufficient to cover all expected gins

When comparing the rule under any of the methods the process is consistent with the principle of conservatism because the goal is to limit excessive wings in pro margin the appropriate market value is determined before comparing it to the cost the purpose of the floor is to prevent an excessive gain from being recognized in the future the purpose of the ceiling is to ensure that the write-drwn is sufficient to cover all expected gins

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3MC: The third step for making a capital investment decision is to establish baseline criteria for...

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When allocating the transaction price to performance obligations when a stand-alone selling price is not readily observable, GAAP suggests all of the following approaches except the expected market margin approach. residual approach. expected cost plus a margin approach. adjusted market assessment approach.
When different investment rules give conflicting answers, then decisions should be based on the Net Present Value rule, as it is the most reliable and accurate decision rule True False
An investment should be rejected if the IRR is Group of answer choices - equal to the required rate of return - greater than the accounting rate of return - less than the required rate of return - greater than the required rate of return
In the price equation, incentives are subtracted from the list price and are added to it to determine the final price. Multiple Choice equity adjustments. О allowances. extra fees. discounts. quotas.
e. IMPORTANT Note that from this example that a higher IRR for a nindividual alternative does not gurantee that the alternatvie is more economical than the one with a lower IRR. It is the incremental IRR value relative to the MARR that determines which alternative is more economical. The result of the incremental analysis are always the same as those of the PW,AW, or FW anaylsis
Which of the following describes one aspect of incremental analysis? O Both costs and revenues that stay the same between alternate courses of action will be analyzed. O Only costs relating to the decisions at hand are analyzed. O All costs and revenues, regardless if they stay the same or differ between alternate courses of action, will be analyzed. O Both costs and revenues that differ between alternate courses of action will be analyzed.
Each of the following are true of relevant information except O different alternatives can be compared by examining đifferences in expected future revernues and expected ta cas O past costs are helpful when making predictions but not relevant when making decisions O significant past investment amounts are relevant to decision making O not all future revenues and expenses are relevant
Initial Margin and maintenance margin ensure that the clearing house will never be at a loss. Do you agree?
Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same?
Prove that Homotheticity is required for the method of representative agent method to find the asset pricing. Otherwise, you have to use upper convultion to find the representative agent utility
For technical analysis, based on patterns of historical prices, to have value, ______ form of market efficiency must be violated.
The third step for making a capital investment decision is to establish baseline criteria for alternatives. Which of the following would not be an acceptable baseline criterion? A) accounting rate of return B) payback method C) inventory turnover D) internal rate of return