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    NEW QUESTION 50
    Changing accounting assumptions from year to year without having justifiable reasons for the changes is a departure from the accounting principle of:

    • A. Historical cost
    • B. Conservatism
    • C. Consistency
    • D. Verifiability

    Answer: C

     

    NEW QUESTION 51
    Which of the following items would be considered a relevant cash flow for capital budgeting purposes?

    • A. Incremental investment in working capital as the sales revenue increases
    • B. Intangible and qualitative factors
    • C. Fixed operating expenses that will be incurred no matter which alternative is chosen
    • D. Research expenses incurred during the previous three years

    Answer: A

     

    NEW QUESTION 52
    Individual orange farmers in a country decide to pool their advertising money and collectively release a new series of advertisements for oranges. Why would the farmers do this?

    • A. They want to shift the demand curve for oranges to the right.
    • B. They want to increase their market power in the orange production industry.
    • C. They want to shift the supply curve for oranges to the right.
    • D. They want to differentiate their brands.

    Answer: A

     

    NEW QUESTION 53
    A study was conducted to examine the effect of age, education level, number of minor legal offences, and daily alcohol consumption on annual income.

    Which of the following hypothesis tests is NOT conducted in the multiple linear regression output table?

    • A. A hypothesis test for the significance of annual income on the four independent variables
    • B. A hypothesis test for the significance of education level on annual income, provided that age, number of minor legal offenses, and daily alcohol consumption remain constant
    • C. A hypothesis test for the significance of all four independent variables on annual income
    • D. A hypothesis test for the significance of age on annual income, provided that education level, number of minor legal offenses, and daily alcohol consumption remain constant

    Answer: A

     

    NEW QUESTION 54
    ......