The higher the required rate of return of an investment, the less an investor will be willing to pay for the investment

A firm's financial structure is defined by the Debt Ratio, while its capital structure is defined by the Debt to Value ratio

Indicate whether this statement is true or false.

Butler Products decided to change inventory methods on January 1, 2016 to more effectively report its results of operations. In the past, management has measured its ending inventories by the average-cost method and they now believe that FIFO is a better representation of its financial position and profitability. Butler's tax rate is 35% for all years

Year Ended FIFO Inventory Average-Cost Inventory December 31, 2014 $250,000 $195,000 December 31, 2015 375,000 320,000 December 31, 2016 240,000 190,000 Which one of the following journal entries correctly records the change in the accounting principle? A) No journal entry need for prospective application of the change in principle. B) Account Debit Credit Retained Earnings 35,750 Deferred Tax Asset 19,250 Inventory 55,000 C) Account Debit Credit Inventory 55,000 Deferred Tax Liability 19,250 Retained Earnings-Prior Period Adj. 35,750 D) Account Debit Credit Retained Earnings 32,500 Deferred Tax Asset 17,500 Inventory 50,000