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NEW QUESTION: 1
Which of the following is/are the neccessary contents of a will?
A. I, II and III
B. All of these
C. I, III and IV
D. I, II and IV
Answer: C
NEW QUESTION: 2
Which of the following statements is (are) true with respect to the impact the choice between expensing and capitalizing will have on certain financial ratios?
I). Profit margins will be higher throughout the period for firms that capitalize certain expenditures as opposed to expensing them.
II). Reported income tends to be more stabilized throughout the period if the capitalization method is used.
III). Asset turnover ratios will be lower for firms that capitalize certain expenditures as opposed to expensing them.
IV). Debt-to-equity ratios will be lower for companies that expense costs as opposed to capitalizing them.
A. II and III.
B. I and II.
C. III and IV.
Answer: A
Explanation:
I is incorrect. It is true that in the early years, profits will be higher when certain expenses are capitalized. However, in the following years, a capitalized method would still report an annual expense; but had the items been fully expensed in the initial year, there would not have been any more recorded expenses.
IV is incorrect because firms that expense costs rather than capitalizing them, will report lower asset, and therefore, lower equity values. Consequently, the debt-to-equity ratio will be higher for a company that expenses the costs in question.
NEW QUESTION: 3
Which of the following is the BEST description of a Service-based Service Level Agreement (SLA)?
A. An agreement that covers one service for all customers of that service
B. An agreement with an individual customer group, covering all the services that they use
C. An agreement that covers service specific issues in a multi-level SLA structure
D. An agreement that covers one service for a single customer
Answer: A
Explanation:
Topic 7, Volume G
NEW QUESTION: 4
"Ongoing monitoring activities are conducted to periodically reassess risk and the effectiveness of control risk," is an objective of:
A. Risk Identification
B. Risk Measurement
C. Risk Management Process
D. Risk Prioritization
Answer: C
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