Assume in Analyzing Alternative Proposals That Proposal F Has a Useful

question 163

Multiple Choice

Assume in analyzing alternative proposals that Proposal F has a useful life of six years and Proposal J has a useful life of nine years. What is one widely used method to make the net present values of the proposals comparable?

• A) Ignore the fact that Proposal F has a useful life of six years and treat it as if it has a useful life of nine years.
• B) Adjust the life of Proposal J to a time period that is equal to that of Proposal F by estimating a residual value at the end of Year 6.
• C) Ignore the useful lives of six and nine years and find an average (7 1/2 years).
• D) Ignore the useful lives of six and nine years and compute the average rate of return.

Comprehend the Periodic Inventory System and its impact on financial statements.

Apply journalizing techniques for adjustments including unearned revenues and supplies expenses.

Calculate Gross Profit using beginning and ending inventory figures.

Recognize the role of Sales Discounts in calculating Gross Profit.