Which of the following statements is FALSE?
A) Aside from the current NPV of the investment, other factors affect the value of an investment and the decision to wait.
B) The option to wait is most valuable when there is a great deal of uncertainty regarding what the value of the investment will be in the future.
C) The smaller the cost of waiting, the less attractive the option to delay becomes.
D) It is always better to wait to invest unless there is a cost to doing so.
C
Explanation: C) The smaller the cost of waiting, the more attractive the option to delay becomes.
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Which of the following facts must be proven for a lender to prevail in a state-law negligent misrepresentation action against a CPA who prepared a borrower's tax return that was disclosed to the lender?
A. The defendant made the misrepresentations with a reckless disregard for the truth. B. The plaintiff justifiably relied on the misrepresentations. C. The misrepresentations were in writing. D. The misrepresentations concerned opinions.
Inventory data for Army & Navy Wear Co. are provided below. Sales for the quarter were 220 units sold for $12 each
Date Number of Units Unit Cost Total Cost Jan. 01 Beginning inventory 150 $5.00 $ 750 Jan. 15 Purchase 70 $6.00 $ 420 Feb. 01 Sale 100 Feb. 20 Purchase 180 $7.00 $1,260 March 05 Sale 120 March 19 Purchase 50 $7.50 $ 375 Required: 1. Calculate the cost of goods sold for the quarter assuming the company uses a FIFO perpetual inventory system. 2. Calculate the cost of goods sold for the quarter assuming the company uses a LIFO perpetual inventory system. 3. Which system (perpetual or periodic) do you think is increasing in use because of computer technology?