Debt covenants are least likely to:

	Allow a firm to issue additional common shares
	Affect a firms adjustment to its target capital structure
	Permit a firm to pay non-cumulative preferred share dividends

Adolfo Ltd. incurred $30,000 of storage cost over the fiscal period for its finished goods. The goods were not sold as of the year-end. The cost would likely appear on the financial statements as:

	Cost of ending inventory on balance sheet
	Operating expense on income statement
	Cost of goods sold on income statement

Suppose the foreign currency is appreciating, which of the two methods of translation would more likely generate higher total asset turnover?

	Temporal method
	Same
	Current rate method

For a real estate company, which one of the following would be the least likely to be adopted if the manager has intention to manage earnings?

	Deferring R&D expenses from current to future periods
	Extending the useful lives of property, plant and equipment
	Improper allocation of cost for mixed-use construction projects