During times of rising prices, which of the following is not an accurate statement?

A) Average costing will yield results that are between those of FIFO and LIFO.
B) LIFO will result in a higher cost of goods sold than FIFO.
C) FIFO will result in a higher net income than LIFO.
D) LIFO will result in higher income taxes than FIFO.

If the buyer bears the freight costs related to a purchase, the terms are said to be FOB destination.

Which of the following has a long shelf-life and its information is likely to remain useful and reliable over a long period of time?

A) Hero content.
B) Evergreen content.
C) Hybrid content.
D) Hit content.
E) Hub content.

Why should the debt portion of the WACC be adjusted for tax?

A) Because the interest paid on debt is not taxable at the firm level
B) Because the interest paid on debt is not taxable at the investor level
C) Because all components of the WACC are not taxable
D) Because the principle paid on the debt is not taxable at the firm level

On May 15, 2010, Retread Company acquired a new forklift in exchange for an old forklift that it had acquired in 2000.The old forklift was purchased for $20, 000 and had a book value of $5, 000.On the date of the exchange, the old forklift had a market value of $6, 000.In addition, Retread paid $18, 000 cash for the new forklift, which had a list price of $25, 000.At what amount should Retread record the new forklift for financial accounting purposes?

A) $23, 000
B) $24, 000
C) $20, 000
D) $25, 000

Shankland, a country in South America, has a political orientation that focuses on improving the welfare of all members of society. The government believes that people should prioritize the good of society above the advancement of the individual. Given this information, it can be said that Shankland has a(n) _____ political orientation.

A) anarchist
B) individualist
C) collectivist
D) fascist

The reality facing managers in contemporary organizations is that they are responsible for attaining high performance along with high ethical standards and social responsibility.

Damage to the environment occurs because:

A) no one involved in markets cares about the environment.
B) a nonzero amount of pollution is never socially optimal.
C) pollution results from production of goods and services.
D) pollution reduces the social cost of production.