Which of the statements below can never be true? Select one:
A. Residual value is less than book value.
B. Residual value is equal book value.
C. Residual value is greater than book value.
D. Original cost is greater than book value.
Residual value can never be greater than the book value as depreciation cannot be made below the salvage value.
The answer is C.
Which of the statements below can never be true? Select one: A. Residual value is less...
Which of the following statements is true? Select one: a. Estimated residual value is not used when calculating double-declining depreciation. b. The annual amount of depreciation is the same for straight line, double declining, and units of production methods of depreciation. c. When calculating straight line depreciation, salvage value is ignored. d. Cost is equal to residual value when using the units of production method for depreciation.
Which of the statements below is FALSE? A) The current book value of an asset serves as the basis for determining the gain or loss at disposal. B) Book value is the original cost of the asset plus the accumulated depreciation. C) A gain on disposal is recognized when the selling price of the asset is greater than the book value. D) A loss on disposal is recognized when the selling price of the asset is less than the book...
10.Which one of the following statements is NOT true? Select one: A. The risk that the lender may not receive payments as promised is called default risk. B. Investors must pay a premium (a higher price) to purchase a security that exposes them to default risk. C. Australian government securities are assumed not have any default risk and are adopted as the best proxy measure for the risk-free rate. D. The greater the risk of an investment, the greater the...
4.Which one of the following statements about the approach to bond pricing is NOT true? Select one: A. To calculate a bond's price, one needs to calculate the present value of the bond's expected cash flows. B. The value, or price, of any asset is the future value of its cash flows. 6.Which one of the following statements is NOT true? Select one: A. The yield to maturity of a bond is the discount rate that makes the present value...
Which of the following statements is TRUE about the rates of unemployment? Select one: O a. Cyclical unemployment can never exceed structural unemployment b. Frictional unemployment can never exceed structural unemployment O c. Cyclical unemployment can never exceed the natural rate of unemployment O d. Structural unemployment can never exceed seasonal unemployment O e. Frictional unemployment can never exceed the natural rate of unemployment
Which of the following statements is true? A. If a company will never pay out dividends, the stock value is zero according to the dividend valuation models. B. If a stock's dividend growth rate is greater than the required rate of return, we cannot use dividend valuation models to calculate the stock value. C. We have other alternatives to valuate stock price. D. All of the above.
Property, plant, and equipment are conventionally presented in the balance sheet at Select one: o a. original cost less residual value O b. fair value less book value 0 C. original cost less accumulated depreciation 0 d. fair value less residual value
Actual aggregate expenditure is Select one: a. always equal to real GDP. b. only equal to real GDP at the equilibrium level of aggregate planned expenditure. c. never less than real GDP but can be greater than real GDP. d. never greater than real GDP but can be less than real GDP.
Which of the following statements regarding goodwill is false? Select one: a. Goodwill is never amortized for financial reporting purposes. O b. A company must review its goodwill for impairment annually O C. A company records goodwill at the time that it acquires another company or at the time it determines that material intellectual capital exists in its employees. Od. A company must review its goodwill for impairment whenever events or changes in circumstances occur that would more likely than...
Which of the following statements is TRUE for a 'cut' stake? grade rod value is less than target setting grad rod value is larger than rod setting grade rod value is equal to the rod setting all of the above