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A company wishing to increase earnings in the current period may choose to: A. Decrease the useful life of depreciable assets. B. Lower estimates of

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A company wishing to increase earnings in the current period may choose to: A. Decrease the useful life of depreciable assets. B. Lower estimates of uncollectable accounts receivables. C. Classify a purchase as an expense rather than a capital expenditure. D. Repurchase shares. At the beginning of 2009, Glass Manufacturing purchased a new machine for its assembly line at a cost of $600,000. The machine has an estimated useful life of 10 years and estimated residual value of $50,000. Under the straight-line method, how much depreciation would Glass take in 2010 for financial reporting purposes? A. $55,000. B. $60,000. C. $65,000. D. $110,000. Joyful Travel, Inc. needs to raise $17 million. If the company chooses to issue zero-coupon bonds and use the effective interest rate method, its debt-to-equity ratio will most likely: A. Rise as the maturity date approaches. B. Decline as the maturity date approaches. C. Remain constant throughout the life of the bond. D. Rise or decline depending on the market condition. Current ratio distortion under LIFO inventory costing may be adjusted by A. adding the LIFO reserve to current assets. B. subtracting the LIFO reserve from current assets. C. adding the LIFO reserve to current liabilities. D. subtracting the LIFO reserve from current liabilities. A bond with a maturity value of $700,000 was initially issued for $710, 870. The bond has a ten-year life and a stated interest rate of 10% paid annually. What is the total interest expense over the life of the bond? A. $700,000. B. $710, 870. C. $689, 130. D. not determinable without knowing the bond's effective yield. U.S. GAAP requires that virtually all costs incurred for research and development of an internally generated patent be A. capitalized. B. expensed. C. amortized over 40 years. D. partially expensed and partially capitalized. E. ignored

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