Which of the following is not true regarding strategic plans?
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1 .At December 31, Bren Co. had the following deferred income tax items:? A deferred income tax liability of USD15,000 related to a noncurrent asset.? A deferred income tax asset of USD3,000 related to a noncurrent liability.? A deferred income tax asset of USD8,000 related to a current liability.Which of the following should Bren report in the noncurrent section of its December 31 balance sheet under U.S. GAAP?
A A noncurrent liability of USD4,000. B A noncurrent asset of USD3,000 and a noncurrent liability of USD15,000. C A noncurrent asset of USD11,000 and a noncurrent liability of USD15,000. D A noncurrent liability of USD12,000.
2 .The determination of gross domestic product (GDP) by the expenditure approach would include:
A Business profits. B Compensation to employees. C A capital consumption allowance. D Net exports.
3 .Which of the following items should affect current income tax expense for Year 3?
A Interest on a Year 1 tax deficiency paid in Year 3. B Penalties on a Year 1 tax deficiency paid in Year 3. C Change in income tax rate for Year 4. D Change in income tax rate for Year 3.
4 .Inflation can be caused by:
A Decreases in aggregate demand and increases in aggregate supply. B Increases in aggregate demand and decreases in aggregate supply. C Increases in aggregate demand only. D Increases in aggregate supply only.
5 .Which of the following statements is correct regarding valuation allowances in accounting for income taxes?
A A valuation allowance is necessary when the realistic probability standard of evidence is satisfied. B Both deferred tax assets and deferred tax liabilities can be reduced by a valuation allowance. C Only negative evidence, not positive evidence, should be considered when determining whether a val...
7 .Chase City uses an internal service fund for its central motor pool. The assets and liabilities account balances for this fund that are not eliminated normally should be reported in the government-wide statement of net position as:
A Governmental activities. B Fiduciary activities. C Note disclosures only. D Business-type activities.
8 .The Waymand family typically ate hamburger as a regular staple in their diet. In the last few years, the family income has doubled, and they have now replaced hamburger with steak as a regular staple in their diet. This is an example where the demand for hamburger:
A Responds as an inferior good. B Is perfectly inelastic. C Is relatively elastic. D Is perfectly elastic.
9 .Which of the following not-for-profit entities is required to prepare a statement of functional expense?
A A public golf course. B A shelter for the homeless. C A private foundation. D An art museum.
10 .In applying the Supply Chain Operations Reference (SCOR) Model, a company would include all of the following in its planning except for:
A Selecting vendors. B Making make/buy decisions. C Assessing capacity concerns and capabilities. D Determining demand requirements.
