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NEW QUESTION: 1
The current economic environment is one of steady inflation. A firm uses historical cost accounting. Which of the following is/are true?
I. The firm's book value is overstated.
II. The firm's depreciation expense is understated.
III. The firm's tax expense is overstated.
IV. The firm's net income is understated.
A. I & IV
B. I, II & IV
C. II & III
D. I & III
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Since the assets are carried at historical values which are lower than the current asset values due to inflation, the depreciation expense is understated. Therefore, income is overstated, leading to an overstatement of taxes. Historical cost accounting in inflationary environment implies that the asset values are understated.
NEW QUESTION: 2
A. Option D
B. Option C
C. Option B
D. Option A
Answer: C
NEW QUESTION: 3
Where do you apply a control plane service policy to implement Management Plane Protection on a Cisco router?
A. control-plane interface management 0/0
B. control-plane service policy
C. control-plane host
D. control-plane router
Answer: C
NEW QUESTION: 4
Which two environments are suitable for cost effective use of Hitachi Accelerated Flash disk media? (Choose two.)
A. large scale Consumer Video on Demand (CVOD)
B. Online Analytical Processing (OLAP) data warehouse
C. Online Transaction Processing (OLTP) with HDT
D. Virtual Desktop (VDI)
Answer: B,C