When a firm buys land on which there is a building, and the building is torn down so that an appropriate new building can be constructed on the land:

a. any of the purchase cost allocated to the old building is reported as a loss.

b. the cost assigned to the land excludes the cost of the old building.

c. the total cost of the land and old building are capitalized as land cost.

d. any of the purchase cost allocated to the old building is capitalized as part of the cost of the new building.

Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d.select short-term savings instruments to lock in earnings at a current high rates.

Personal financial planning is the process of creating and achieving financial goals? true or false

If the ceo of a large, diversified, firm were filling out a fitness report on a division manager (i.e., "grading" the manager), which of the following situations would be likely to cause the manager to receive a better grade? in all cases, assume that other things are held constant.a. the division's basic earning power ratio is above the average of other firms in its industry.b. the division's total assets turnover ratio is below the average for other firms in its industry.c. the division's debt ratio is above the average for other firms in the industry.d. the division's inventory turnover is 6, whereas the average for its competitors is 8.e. the division's dso (days' sales outstanding) is 40, whereas the average for its competitors is 30.