A benefit corporation , also called a public benefit corporation or B-corporation, is a corporate entity whose legally defined goals are only having a positive impact on society and the environment, not making a profit.

A zero-balance account helps the firm free up surplus cash.

According to the theory of efficiency wages, firms operate more efficiently if wages are below the equilibrium level.

Inventory is reported as a long-term asset on the balance sheet.

Assume the expected inflation rate is 5% for each of the next two years and 7% per year for the three years after. Calculate the inflation adjustment (INFL) for a 5-year loan.

A) 6.2%
B) 6.5%
C) 7.0%
D) 7.5%

Which of the following does not properly describe the comparison of the effective income tax rate and the statutory income tax rate?

A) The rates could differ due to the tax jurisdiction that a firm operates in.
B) Permanent differences that cause book income to be higher than taxable income will cause the effective rate to be lower than the statutory rate.
C) The reconciliation between the rates can reflect information pertaining to a firm's tax policy decisions.
D) A firm with aggressive tax policies will most likely have an effective tax rate that is much higher than the statutory rate.