Refer to Exhibit 23-1.Assuming an income tax rate of 30%, the cumulative effect change reported in Carol's 2012 income statement would be

A) $ 0
B) $ 77, 000
C) $ 93, 333
D) $110, 000

Total losses of the Fortune 500 companies in 2008 were ____ times the losses incurred in 2006.

A) 3
B) 6
C) 10
D) 14

Historically,GAAP did not require firms to record asset retirement obligations.

Suppose two portfolios have the same average return and the same standard deviation of returns, but Buckeye Fund has a higher beta than Husker Fund. According to the Treynor measure, the performance of Buckeye Fund

A) is better than the performance of Husker Fund.
B) is the same as the performance of Husker Fund.
C) is poorer than the performance of Husker Fund.
D) cannot be measured as there are no data on the alpha of the portfolio.
E) None of the options are correct.

Which of the following statements is false?

A) Absent evidence to the contrary,a company is expected to continue operating for the foreseeable future.
B) An item is considered relevant if it has the ability to influence a decision.
C) Information is considered to be faithfully represented when it is complete,neutral,and free from error.
D) Accounting information should be reported in the national monetary unit with adjustment for inflation.