Assume That Pappas Company Commenced Operations on January 1, 2008

question 86

Multiple Choice

Assume that Pappas Company commenced operations on January 1, 2008, and it was granted permission to use the same depreciation calculations for shareholder reporting and income tax purposes. The company planned to depreciate its fixed assets over 15 years, but in December 2008 management realized that the assets would last for only 10 years. The firm's accountants plan to report the 2008 financial statements based on this new information. How would the new depreciation assumption affect the company's financial statements?

• A) The firm's reported net fixed assets would increase.
• B) The firm's EBIT would increase.
• C) The firm's reported 2008 earnings per share would increase.
• D) The firm's cash position in 2008 and 2009 would increase.

Distinguish between direct and indirect perception checking strategies.

Explain standpoint theory and its relevance to understanding cultural differences in communication.

Recognize and explain the processes and errors in perception, such as stereotyping and fundamental attribution error.

Identify the stages of the interpersonal perception process.

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Definitions:

Basement

The lowest floor of a building, typically below ground level, often used for storage, parking, or as a living space.

New Friends

Recently formed relationships with individuals based on mutual interests, experiences, or connections.

Political and Social Views

The perspectives and opinions on how society should be governed and on the organization and functioning of communities, reflecting individuals' values, beliefs, and principles.

Romantic Partner

An individual with whom one shares a deeply personal relationship, characterized by emotional or romantic connection.